One of the amazing, if a bit overlooked, features in Windows Live Photo Gallery is the ability to create a panoramic photo from two or more shots.  To demonstrate this, I've found 3 photos of the cruise ship we went on for our anniversary a few years back.  I had to take 3 photos to capture the whole ship, due to its massive size.

The first step is to select the photos you would like in the panoramic shot.  The best results will come from photos taken from the same position, at rotated angles, or of the same object, straight on, from a shifted position.

Hold down CTRL as you click on each photo.  You'll notice that it will be selected by a selection bubble around the photo.  Once you have the photos you want to include in the panorama, go to the Make menu and select Create a panoramic photo.

When you select Create panoramic photo, a progress window will open.  The more photos or the more complex the stitching process, the longer this will take.  In my case it was about 30 seconds.  Windows Live Photo Gallery does the following operations at this time:

• Reads in the photos
• Solves the angle positioning
• Stitches the photos into a composite
• Prompts you for your desired save location

After Windows Live Photo Gallery has finished stitching the photos together, it asks you where you would like to save the photo.  Once you decide, give the file a name and click Save.  Windows Live Photo Gallery will save the panorama and open it for you immidately afterward.  Here is the result for mine:

Isn't this an incredible result?  Enjoy!