KeithB
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Yes, though you have to go through some gyrations to focus automatically. I have the XS and in the demo I just gave I demonstrated how IS worked on my 70 - 300 mm lens with the camera hooked up to a projector.
But you can also use Canon's software to use the computer. It will even turn on Liveview for you if you if it is off on the camera.
In general, for questions like this, I like to go to Canon's website and download the camera's manual, or in this case the software manual for EOS Utility.
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