Many skins deal with Panoramics very well (I use Chameleon), and occasionally the actual panoramic software is discussed. I have been experimenting recently and though I'd feed back some thoughts etc.
I have always used the free, standard stitching software that came with my Canon digital cameras,
PhotoStitch (v3.1 @ December 2006). This performs quite well, generally, is relatively quick and simple to use. It is totally automatic, so you have no control over the actual stitching points. Recent problems highlighted this fact, so I had to look for something better ….
I trawled the net and played with a number of offerings, free and not-so-free. If you are serious about creating Panoramics, I recommend looking at [url=http://www.panavue.com/specials/en/photo_montage_software/default.htm]
PanaVue ImageAssembler[/url] (v3.5 @ August 2007). For
hand-held panoramics, you
must go for the Professional version, so it ain't cheap, for sure. However, you get an automatic mode that works great for most cases, and total control if required for problem panoramics (or if you really want to get a top-quality panoramic).
Of course, it all depends on the source images in the first place, but that's another story.
For a few examples of what I have been trying to do, please see
Panoramics
Mark