Does this mean the IS is defective?
 

Have an HG10 with this issue.

Playback at 1/8thX reveals the entire image field quickly oscillating up and down by about 1 pixel. Maybe 3 times per second at 1/8thX. This gives the regular image a slight but noticeable blur at normal speed.

Has something failed?

Nick

Re: Does this mean the IS is defective?
 

Is this a 'new' issue for your camera, or one you've just noticed? Does it do it only on the camera LCD screen, or also your TV or monitor?

I guess if it were mine, and it were a new issue, I'd try pushing the 'reset' button which is next to the display button behind the LCD, and see what that does. A lot of camera ills are cured by a reset. Let us know how it goes.

Re: Does this mean the IS is defective?
 

Nick,

This sounds like what happens when you have the image stabilization on while the camera is on a tripod. Can be more pronounced in low light. What is your set up?

Re: Does this mean the IS is defective?
 

Was the video shot 60i? This may be an artifact of slow motion playback of interlaced material where in a single field is repeated several times before the next field is displayed, not a problem with image stabilization. If so, try it with 60p footage.

On page 88 the user manual cautions that you may see artifacts during slow or fast playback.

Re: Does this mean the IS is defective?
 

To isolate the problem, turn off the image stabilization and check if the image still moves up and down.