Crazy has been looking at different photo stitching software and he put me on to autostitch.
It's fully automatic and the results speak for themselves, if you take any panorama pictures, I strongly suggest you check it out!
Here's an example, joining the following 2 pics together:
My best attempt using photostitch:
The only thing I change in Autostitch is the scale (to 100%) and JPEG Quality output:
By Tony Baker: email