Hi Dave: the Image Stabilization in the E-3 can be seen when using the LCD in Live View mode. To quote from a recent test:
"It is possible to demonstrate IS to yourself by mounting a long lens, switching to LV, selecting a target, focusing thereon and pressing OK which magnifies the target 5, 7 or 10x. See how much it is swaying as you try to hold the camera steady. Now press the IS button and select IS 1. The result is (can be) dramatic."