Step 1Get what you need.
Hardware:
1) A Digital Camera. I used a Canon EOS20D Digital SLR.
2) A memory card. Prefferably a big one; you'll be taking alot of pictures.
3) A Tripod. Not necessarilly a panoramic tripod. I just used your normal garden-variety tripod.
4) A Windows computer. Possibly the one you're reading this on.
Software:
1) Autostitch, a program for stitching together different images into a panorama.
2) The GIMP, an all-purpose image-editing software.
3) PanoCube, a program for actually converting panoramas to Quicktime VRs.
4) PanoTools, more specifically, a file called PTStitcher.exe. It's freeware, but it's getting harder to find Windows binaries of it. Most sites host java Jars.
Install all three programs. Autostitch can just be unzipped to any folder on your Hard drive. GIMP requires you to install the GTK+ Runtime environment, before you can install it. If you don't want to install GIMP, you can use whatever your favourite image-edeiting program is. I'm offering this is a free alternative to commercial image-editors (since this instructable is made to be all free software).
PanoCube is a pretty difficult to use, software, but it's the only one available for Windows that does this. Right now, you'll want to be sure and install PanoCube to a folder directly on the root folder of your Hard drive, in a filepath with no spaces in it (eg: C:\PanoCube is a good choice).
Unzip the files in PanoTools to the same folder.
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http://www.panomundo.com/panos/howto/workflow_cubicconv.html
I can't vouch for it because i don't have a mac. Tell us if it works. =)