To create a beautiful panoramic photograph start with good camera capture. Ideally, you will have a panoramic head. A panoramic head allows you to rotate your camera on a perfect plane with exact overlaps. In a pinch, you can create solid panoramic image capture handheld. Be careful to keep your camera level. For a taller photo turn your camera to the vertical position. Overlap your image coverage by 30-50 percent. As a result of that amount of overlap Photoshop, Lightroom or other panoramic software can give you the best result.
For more details and thoughts on stitching panoramic photos check here. Or, check out this webinar on creating awesome panoramas.