Apple has been building the ability to take panoramic photos into the default iOS camera app — but the company hasn’t officially released the feature yet. But Conrad Kramer discovered that the feature is already baked into iOS 5.0… it’s just not enabled by default.
In order to enable support for panoramic photos you’ll need to jailbreak your device and download a utility called Firebreak from the Cydia Store. Alternately, if you want to make the change manually, you need to change the key “EnableFirebreak” to “yes” in com.apple.mobileslideshow.plist — but I suspect it’s easier for most people just to download the app from Cydia.
iPhone Dev Team member chpwn is responsible for submitting the Firebreak app to the Cydia store.
In order to shoot a panaromic photo, you just choose panorama mode, tap the camera button, and move your camera from left to right until you’re done capturing your image.