HC series: what to expect with panning/motion?

I tried out a Sony HC9 HDV over the weekend and wondering if this is just how HDV is. I've shot for years with DV and panning, following your subject, even riding a bike is pretty smooth. That wasn't the case at all with the HC9.

I shot in 1080/60i in bright sunlight. The picture was great, but if I did much panning or moved the camera (I guess the same as panning to the camera) the video often looked really jerky as though the steady shot was turned off. A good example is if someone walked from your right to left and you followed them with the camera to keep them in frame. The camera looked like the OIS was off. Then once you hold the camera still everything is steady. Walking with the camera (I know, not ideal) or riding in a car was completely unwatchable where is with standard def DV it looks a bit bumpy, but totally usable.

So is this what to expect with HDV or do I have a defective camera?

Thanks