iOS 5 has a panorama mode, but Apple hasn’t announced it, and you will have to jump through a few hoops to use it. First, you will need a developer license. If you do, then you’re set. If not, then you may have to wait a while. However, there is going to be a jailbreak app soon we’ve heard.
1) Go to the following:
2) Add the following value: EnableFirebreak=Yes
3) You now have a panorama button, which will capture images and create a panoramic image.
According to Gizmodo, the developer who discovered the panoramic mode is creating a jailbreak app that will enable it without the developer access. They also speculate that the reason Apple didn’t go through with this feature (at least not yet) is because it’s somewhat cumbersome to capture the image.
Please know that you will need iOS 5 and an iPhone 4 or later (because these phones added the gyro)
We suggest checking out his site to see when it’s updated with the app: KramerApps