The paper presents new performance results for the enhanced concept of an opto-mechatronic camera stabilization assembly consisting of a high-speed onboard optical processor for real-time image motion measurement and a 2-axis piezo-drive assembly for high precision positioning of the focal plane assembly. The proposed visual servoing concept allows minimizing the size of the optics and the sensitivity to attitude disturbances. The image motion measurement is based on 2D spatial correlation of sequential images recorded from an in situ motion matrix sensor in the focal plane of the camera. The demanding computational requirements for the real-time 2D-correlation are covered by an embedded optical correlation processor (joint transform type). The paper presents briefly the system concept and fundamental working principles and it focuses on a detailed performance and error analysis of the image motion tracking subsystem. Simulation results of the end-to-end image motion compensation performance and first functional hardware-in-the-loop test results conclude the paper.