With Photoshop Elements 1.0, Adobe introduced the PhotoMerge tool which facilitates the assembly of multiple images into a panorama.  Since Photoshop Elements 1.0 is largely a pared down version of Photoshop, one might have expected Photoshop 7.0 to incorporate PhotoMerge.  It did not.  Fortunately, for those who own Photoshop Elements 1.0, it is possible to transfer the PhotoMerge files to the Photoshop installation page and access PhotoMerge from the Photoshop File > Automate submenu.  To accomplish this, copy the PhotoMerge files as indicated below.   Similarly, the more recently released Photoshop Elements 2.0 may be used as the source for the plug-in files, with the changes noted.

Note: Photoshop CS provides a native PhotoMerge tool, with the added benefit that the individual photos comprising a panorama can be maintained on separate layers.