Some time ago I had posted
this short guide how to make air panoramas...
The panorama above
made at Olypiapark Munich was recorded with the Panasonic GF1 and the 8mm lens.
But you could do a panorama even with a normal lens, like I did here
Powerplant Etzenhausen, recorded with the Nex5 and the 16mm lens.
The downside of using a non fisheye lens is that you need more pictures, it takes longer to record and to align the images but you also get better quality and resolution if you are able to do it right...
Sometimes I even use to swap and reuse the sky pictures made on the ground.
ie. this panorama
Powerplant Brenntenberg was shot on another day more than 120km away from the first one, but is using the same sky ;-)
I stitch and blend my panoramas with PTgui and usually use Photoshop only in post to do some color / contrast corrections.
As mentioned already set your camera to manual mode and use RAW format.