Earlier this month, Matt over at FresHDV posted some photos of a new, fairly inexpensive ($50) gizmo called the LevelCam, which helps stabilize camcorder footage. This is no Steadicam -- there's no counterweight, no spring-loaded arm, no gimble. It's just a small horizontal mounting surface that allows a camera operator to hold a camera level with two hands instead of just one. The LevelCam looks throw-it-in-your-backpack small, which is an added bonus. Of course, if you're too cheap to spring for something like the LevelCam -- of if you just want to see how such a thing works -- you could build a similar contraption. Stu Maschwitz's DV Rebel's Guide has instructions for building what he calls a "ghetto cam." (Note to Stu: Not to get too PC on you, but I think "StuCam" or "RebelCam" would be a better name for it.) What is it? Basically a 2x4 and a couple of 1" dowels.
I just built a "RebelCam" to see just how much it helps stabilize the image, and I have to say that it works better than I expected. The materials cost less than $10; building it took about an hour. The two downsides are that a) it's kinda bulky and b) getting the camera mounted with a thumbscrew is a pain. For $40 more (and no effort) you can get a smaller, possibly more convenient version.
Of course, you can just try to hold the camera steady with one hand. People have done it for years. Or at least tried.