If you're talking about a "Stitch Assist" mode, if you've never shot panos before, it can help you make sure you've got appropriate coverage, but as long as you can actually tell that you've got a third of the frame or so overlapping, it really doesn't make much difference.
Wulf--my Canon P&Ss have always had a "Stitch Assist" mode, where the frame you just took is juxtaposed with live view so you can line up the subject as you shoot. It can typically only handle one row or one column of images, (although there's a mode for documents that allows you to do four in a two-by-two grid). It also names the image files with a different suffix so you can easily pick out the pano group, and Canon's Photostitch software (which comes with the camera) can recognize the naming convention and line the images up appropriately.
Photostich, however, is pretty braindead if you do anything but a single row in landscape mode. I once just flipped the camera into portrait mode to get more vertical coverage for a pano, and the software couldn't handle the new FoV. I had to resort to Calico (Kekus's port of Autostitch) for that one.
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