[danrok]

I'd guess they'd use the first frame as a master, and re-align the following frames to that.

That would work OK, for small movements, i.e. someone swaying a little while trying to stand still. It wouldn't work if someone was running past, but then you don't necessarily expect or want all movement to be frozen, especially in low-light.

All this is really, is just the shifting of some existing post-editing tricks from the desktop PC to the camera - now that it is possible for a fairly cheap camera to have a fairly powerful processor which isn't too much of a power drain.