There are loads of porgrams that will help you with this. Take a look here:
http://www.ptgui.com/
and here
http://www.pixtra.com/index.htm
and this one is for free:
http://www.volny.cz/panopohanka/index.htm
and here is a whole list:
http://graphicssoft.about.com/od/pan...hing_Tools.htm
BTW I think Photoshop CS has that option too..not sure about that
I made one pano long time ago. I can't even remember what software I used for it. So I can't tell you how these work, I just found them on the internet. I hope you can use them.