http://en.wikipedia.org/wiki/Image_stabilization Different companies have different names for the OIS technology; for example: Image Stabilization (IS - Canon, the first to produce an OIS lens), Vibration Reduction (VR - Nikon), MegaOIS (Panasonic and Leica), Super Steady Shot (SSS - Sony), Optical Stabilization (OS - Sigma), Vibration Compensation (VC - Tamron) and Shake Reduction (SR - Pentax).
In Nikon and Canon's implementation, it works by using a floating lens element that is moved orthogonally to the optical axis of the lens using electromagnets. Vibration is detected using two piezoelectric angular velocity sensors (often called gyroscopic sensors), one to detect horizontal movement and the other to detect vertical movement.[3] As a result, this kind of image stabilizer only corrects for pitch and yaw axis rotations,[4] and cannot correct for rotation around the optical axis. Some lenses have a secondary mode that counteracts vertical camera shake only. This mode is useful when using a panning technique, and switching into this mode depends on the lens; sometimes it is done by using a switch on the lens, or it can be automatic.
Some of Nikon's more recent VR-enabled lenses offer an 'Active Mode' that is intended to be used when shooting from a moving vehicle, such as a car or boat, and should correct for larger shakes than the 'Normal Mode'.[5] However, Active Mode, when used under normal shooting conditions, can result in poorer results than the 'Normal Mode'.[6]
Most manufacturers suggest that the IS feature of a lens be turned off when the lens is mounted on a tripod as it can cause erratic results and is generally unnecessary. Many modern image stabilization lenses (notably Canon's more recent IS lenses) are able to auto-detect that they are tripod-mounted (as a result of extremely low vibration readings) and disable IS automatically to prevent this and any consequent image quality reduction.[7] The system also draws power from the battery, so de-activating it when it is not needed will extend the time before a recharge is required.