So I've been messing around with a few pano apps for the iPhone for some time now; the best so far is simply called Pano; it's been around for seven months or so and allows you to make a single-row pano up to a full 360 degrees. The best part about this app is that it preserves the edge of the previous photo in sequence as a transuscent strip down the left edge of the phone's screen so it's easy to get the proper overlap and alignment.
A newer app is called Auto Stitch; you take the photos in sequence, even in multiple rows, then load them into the app from the camera roll. Despite the claims on the app's page, I've only been able to get it to stitch four or five frames at a given time, as the app otherwise crashes, no doubt due to memory constraints. Perhaps it works better on the 3Gs than on my 3G, but it's a dissapointing implementation of an otherwise great idea.
I've attached a couple iPhone panos made with Pano, one from Fiji and the other here in Seattle.
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