Hi
Load your shaky video in the normal way (Add file) It will now be listed in the media list under the "Video Files" tab.
Note that you don't have to have the actual clip on the sequence line to stabilize it.
Right click the video on the Media list.
The fourth option down in the menu is "Stablize Video."
Left click this option
VP with now do this task and ask you at the end if you want to swap your shaky video with the stabilized version. (The original clip on your PC is unaffected)
If you accept this option the clips are swapped including any you might have in the sequence line.
It works very well but don't expect it to work wonders on something VERY shaky. 
If your clip has a lot of shake there may be a juddery border as badly displaced frames are lined up. If this is bad you can use the CROP effect to trim them (Use "Zoom to area" with this effect.)
Hope this helps
Nat
