Dave,
Great choice on the Sony line of camcorders. I have a Hi-8 camera I bought several years ago and it is still working wonderfully. It even still has the original InfoLithium™ battery. Night Shot is a cool feature too. Never used it filming RC but did a trip to Carlsbad Caverns a couple of years ago and wow, neat feature.
I liked the Sony so much that in Sept 2000 I bought a Sony DSC-S70 digital still camera, and it has paid for itself many times over.
If I were in the market for a new camcorder today it would be a Sony Digital-8 over the Hi-8 because I like to download video to my PC and add sound tracks, etc... and the Digital-8 would be easier and better quality.
And yes, Image Stabilization does work.
Hope this helps!