Canon has maintained the position that image stabilization functions best when installed in the lens. According to Canon, "The advantages of IS in the lens are, first, that each IS system can be designed and optimized for its specific application, yielding a level of performance unattainable by the in-body, shifting sensor technique. Second, one can see the image stabilization effect in the finder. The image is steady; accurate framing is possible; the AF point can be placed precisely, and the photographer can concentrate on the shot and capture the best moment. Panning is also easier and more effective than with the in-body approach." With that understanding along with the popularity of IS, it is not surprising that Canon introduced an image stabilized version of the value-priced Canon EF-S 18-55mm f/3.5-5.6 II Lens currently included in many Canon DSLR kits. 

What was less apparent from the announcement was that the Canon EF-S 18-55mm f/3.5-5.6 IS Lens would bring us an upgrade in optical performance as well. Before reading any farther, you need to be aware that all Canon EOS cameras can accept EF lenses but only Canon EF-S compatible bodies (1.6x FOVCF only) can accept EF-S lenses.