Source material of a videoclip:
In this example, the cross hair has been created only to show the undesired camera movement.
The cross hair is now fixed on one point on the ship. To compensate, suceeding video frames need to be moved in reverse direction to the movement. That is why the borders are appearing. These are marked red in this sample for visualisation purposes only.
How to eliminate these borders you can see in the next pictures.
Mercalli provides the following options to deal with the resulting border areas:(right bottom = magnified result)
The border is left black.
Use this option if you like to scale (magnify) or crop the stabilised video sequence later, using your own editing software.
The black border has been removed by a color-blur effect.
Use this option if your video has unicolor borders. These adjacent colors will be used to cover the black border. This option is ideal for use with video sequences recorded in water, sky, or underwater etc.
The video can be scaled as much as necessary until the borders are completely removed from the video frame. Of course, when a video frame is scaled up, there is always the possibility that blurring will occur.
This can be compensated (with limitations) using a sharpness-filter in the NLE.