There are many ways of creating panoramas. Here is a method that I have used successfully.
Take the pictures
You should take a sequence of photos in a cricle around you making sure that you get the overlaps right. You need to concentrate as you take the set of shots. The nice thing about the Olympus C960 camera is that it displays rectangles in the view finder so that you can line up the overlaps very easily.
Stitch the images together
Get yourself some stitching software. I have used a few of the free ones on the Net. Most have a 30 trial period and then stop working. I ended up buying ULead Cool 360 from http://www.ulead.com/cool360/trial.htm. It was cheap and I like using it.
Save the image and then doctor it
I save the image as a .png file and load it into Macromedia Fireworks. I then play with the Colour/Adjust menus until I have the image looking the way that I want to.
Get the file size as small as possible
I look to get a final file size of about 80K. As you know, the bigger the file, the slower it loads over the Net and the more frustrated your user becomes.
Here are my tips:
a. reduce the image height to about 300 pixels
b. save as a .jpg file with the quality at about 60%. I find that the image still looks good and the file size is much smaller than if you use 70% or greater.
Load the image into the Panorama Gallery
The Media Gallery tool is set up so that you can upload the image from your local machine to the server from the Media Gallery Control Centre.
If you have any questions that I may be able to answer, please email me.