A panorama photo is made up of several photos that have been stitched together.
There are many software programs that produce panoramas.
When you take the photos, it is best that you use a tripod and overlap the photos at least 50%.
For a camera that fits your wants.....take a look at the Canon A540.
Here is a link to a review of the Canon A540:
I am thinking of getting a new digital camera that is good for panoramic pictures, I want something that has good resolution as in at least 6 megapixels. It should be easist to use, best focus, and highest picture quality. I am an amatuer,I want good photos and would sort of like to stick with the same size memory card (sd) and 2AA rechargable batteries if possible. It also has to come at a reasonable price. Any suggestions? Thanks!