This video has been stabilized with by two passes with the deshaker filter. It is the first 3 seconds of the original video, however, it has been looped 5 times for analysis purpouses.
A user named Echelon117 claims to have filmed a UFO with his mobile phone. Upon closer inspection you can see the "UFO" bounce around along with his camera shake. To me this indicates that the "UFO" is actually a CGI object and they did a very horrible job at "motion tracking" the CGI object when it was composited into the original video clip to make it look like it is actually being filmed.
This video is a screen captured with CamStudio and stabilized with VirtualDub using the Deshaker plugin. This video only shows the first few seconds of the original video where the movement of the "UFO" is most visible. You can clearly see that "UFO" jumps around exactly when the camera moves around.
Conclusion: This is a HOAX, and is poorly done CGI.
Original video is here:
http://www.youtube.com/watch?v=sDLvH3VzP54
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