My GF has a Canon ZR25 (electronic stabilization) and I have the Optura 100MC (optical stabilization). While I love the form-factor of the ZR25, the image quality is noticably better on my Optura. This is isn't entirely the fault of the image stabilization, since the Optura has a better CCD, but I still think it's significant.
Electronic stabilization means that a computer chip in the camera is constantly checking and rearranging your pixels, which is usually bad. I suppose it's analagous to digital-zoom vs. optical-zoom.
As to your situation, I would sincerly recommend going with optical stabilization. These cameras are a little pricier and a little bigger, but I can certainly see a difference in video quality, and I'm just an amateur shooter.