Check Out Photomerge!
You can create really cool panoramic images with Photomerge. Located under File>Automate, Photomerge has taken great leaps to make your panoramic photos as painless as possible. In some cases, you can shoot holding your camera close, and shoot in a circle. Thanks so much to Dave Cross for the tip, although I’m sure many people will wonder what I am doing spinning in a circle like I’m seven years old. At least I have an excuse.