Is there an open source Windows/Linux code for real-time image stabilization of live video captured from firewire ? By image stabilization, I mean minimizing the disturbances caused by small camera movements/shake.
Yes, there is. There are optical stabilizers built into video cameras that use a prism attached to a weight. There are electronic stabelizers, that use fuzzy logic to move the image subregion within a larger image capturing plane.
There is also mpeg compression which uses motion vectors on a block-by-block base. By itself, it does not compensate for motion, but it gives you great information about motion vectors inside the image that you can use. Stabilization then could be done by adjusting H and V sync.