There's a few things a camera needs for panaoramic shots: (1) manual focusing; (2) manual controls. Hence, any prosumer camera models or dslr could take fairly decent panoramic shots. However, you would need to spend some time, sit down in front of the PC and stitch it up via PS.
It's not so difficult... ensuring consistent exposure, keeping lens angle same....
take a series of shots. The canon digicams come incl. w/ software for you to stitch photos toghether to use as panos. If you want samples, pm me and give me your email address.
The pano stitching software is also available free off the net.