Torley Linden has created a new wiki page including details about setting up panormas in Second Life, CLICK HERE. Torley did a tutorial back in December 2006 about how to make a beautiful Second Life panorama in 15 minutes too, CLICK HERE. Second Life Panorama Tutorial
Recently Torley created a Here island panorama, 360-degree view of the island. There is a flickr group called SL Panorma where you can share your panormas with the rest of the Second Life community.