I’ve been playing with my iPhone 4 and an app that creates panorams by using the phone’s gyroscope and camera. It isn’t perfect, but it works pretty well.
Click here to see the page the app generates when you upload via the built in Twitter uploader:
If you’re viewing from an iPhone or iPod with a gyroscope, the site will detect it and allow you to pan by moving your device; you capture the panoram the same way.
If you think it sounds neat, check out their Website.
To see a couple of test panorams, check out the Photos page.