Two type of images can be created - a panorama, which is created using an Image Composite Editor and the Photosynth app, or synth - a collection of high resolution images, which is more detailed, but lacks the seam-less transition of a panorama image. Here is an example of a synth I made using stills I took last December at Sushisamba in Heron Tower, captured on a Canon S90 and synth'ed and uploaded using the Photosynth desktop client:
And here is the panorama version of the same images when ran through the ICE application first before uploading to Photosynth:
The recently released Windows Phone 8 app also means that Windows Phone 8 owners can finally join their fellow iPhone and iPad users in capturing and creating Photosynth panorama easily and directly from their smartphones. Owners of the Nokia Lumia 920 and iPhone 4/4S/5 owners will get better results, as these phones contains the necessary gyroscope hardware, which combined with the accelerometer, will provide a more precise information over the devices' 6-axis movement in space.
You can download Photosynth from Windows Phone Marketplace or iOS App Store.