While we all may be holding our breath waiting for some form of Photoshop for the iPhone,Debacle Software does a great job of mimicking Photomerge.  Upon launching Pano, you are led through steps such as taking pictures, and then save, delete, or retake it. One thing that Pano has that Photoshop’s Photomerge does not is a transparent overlay showing you were to line up your next picture. We have seen this kind of thing in the CS3 Clone Stamp tool, but Photomerge for Photoshop has yet to give us any kind of overlay options.

Once you are finished taking all your photos, Pano seams the images together and saves them to the iPhone Photo album. The results are really outstanding, especially when you put it together that all this was created on a mobil app. That and the $3.00 price tag are very worthwhile.