It's OK, it magnifies a little. The problem is that the camera can't go closer than some 20cm from the object, otherwise the picture gets blurry, so it isn't a much of a magnification. Maybe it is a limitation of the camera autofocus itself, is it possible to implement a macro mode?
Stabilization mode is useless on my N95 8GB - what it does is it turns off the live view and reduces the screen refresh speed to something like 1 frame per second. That can't be called "stabilization"...
And it is very difficult to use it without stabilization - it is almost impossible to hold a camera in such a way that the picture doesn't shake all the time.
Overall, it could be quite useful if the stabilization issue is solved.