there is company that already do that... especially for iphone / ipod touch.. maybe ipad too..
the thing that u need is to buy an special fisheye lens to merge or put in the iphone camera and shoot from there..
this app come with free hosting up to 1gb..
the only setback maybe the quality...
if u want to create panorama that compatible with iphone of your own.. better buy iphone-krpano license... :)
they also using krpano... the progress loading and button are trademark of krpano.. :)
link here
regards
bulp