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.
You know… you don’t have to use Continuous high speed shooting when taking your pano shots. That should keep you from spinning like a figure skater!
I cannot express how much the canon 7d’s pitch and roll helps with photomerge and or Nikons virtual horizon. For cameras that dont have such features, a cheap 2 axis hot shoe level helps when shooting any size panorama. Otherwise it will shift when photoshop stitches the pano and you will get less usable image unless you like the old retro collage look to your panos. Holding the camera close doesn’t offer near enough stabilization unless you’re using a fisheye or UWA lens.