Mode 2 on image stabilised lenses..

[ride_the_spiral]

This question is nagging at me.. so I must get it out..

On an image stabilised lens (which has mode 2 selected) how is a subject able to be perfectly sharp and in focus, while the background (even to a few inches either side) has a motion blur effect?

I'll use this photo as an example - http://www.pbase.com/image/59718819

I guess what I'm asking is - what are the principles/workings behind the lenses mechanisms to allow this to be done.

[gemmf]

Basically Mode 2 corrects the movement only in the direction at right angles to the camera's panning movement. The Mode 2 IS doesn't create the motion blur. You still have to be good at panning to create this effect, if this is what you are asking.