In Final Cut Pro 6 you can use the SmoothCam effect to stabilise footage. It moves and rotates footage to get rid of camera bumps. As doing this moves the footage such that it no longer fills the screen, SmoothCam can also scale up the footage so that you don't see past the edges of the moved, rotated footage.
This shows a hand-held (not well colour-balanced) shot. Then three stabilised shots.
The first stabilised shot uses 'medium' settings (2.5 out of 5). The second uses 'full' settings (5 out of 5). The third shot takes the second and pans it to show more of the scaled up footage.
SmoothCam works best on progressive footage and for those mastering to 720p using a 1080 camera.