Olympus E-M5 Video Stability control troubles

Hello all,

First off, thank you for your help. I used this site as one of my tools for picking my OM-D and am very happy with it.

I have searched and have not found anyone else with this problem so I felt that I needed to ask myself. Sorry for being a new poster and beginning with a question.

Problem -

When shooting videos, the camera adds what looks like a software enhancement to the smoothness of the video by stretching, shifting, or tilting the shot.

This problem can be seen the the first 12 seconds of this video. Sorry, this video is a company video. It is not an advertising video and is needed to show the problem. I hope this is not against the rules. For those that would be offended by this, please don't watch.

Here is the example -
http://www.youtube.com/...amp ;feature=share&list=UUo0_6VxevokFfUbf8ECJkAw

This is not noticeable on the viewfinder when taking the videos. It shows up only when the videos are transferred to my computer.

The videos exhibit this problem before they are uploaded to Youtube.

I have checked other Youtube videos taken with this camera and I don't see this problem.

I use this camera mostly for business and I need a solution in order to continue using this otherwise perfect camera. Any help would be much appreciated.

Thank you all kindly

Details

The camera is the Japanese model OM-D EM-5

The video is shot in 12mm with the stock Olympus 12-50mm lens (no internal stability control)
Firmware is 1.1 body and 1.1 lens.
The camera is mostly stock and the videos are shot in iAUTO mode
Image stabilizer is the standard IS1 setting
The auto focus for the Video is set to C-AF
The 5-axis hum turns off when shooting the video
The video is set to 720 x 1280 (HD-F)