One of our friends just got back from a ski trip to Japan..I know, some people have all the fun. When he was there he took a panaromic shot and was showing off the pics to us the other night. We suggested he try using Windows Live Photo Gallery as it does a great job stitching photos for you.
Well he went home and tried it, and we weren't wrong.
Here is the original stitch he had done. In this size you can see the different colours on the stitches.
See the original size here: http://smiffyspics.smugmug.com/photos/261418244_Vv5oy-O.jpg
The stitch using Windows Live Photo Gallery. Lines are a lot less visible.
The original photo cand be found here: http://smiffyspics.smugmug.com/photos/262234146_FroqD-O.jpg