I am not really sure if you are asking for directions on how to code this or if you are simply looking for an existing application that can do it.
In my experience, if you want to stitch multiple images together to achieve a panorama effect, plan on overlapping more than just "a few pixels" with the neighboring images. You need a good overlap to calculate 'tilting' of individual images, account for barrel distortion, differences in brightness and contrast and many other factors.
Check out this Wiki for some fundamentals:
Wikipedia - Image stitching[
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I have not tried it out, but here is an
OpenCV project[
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Here is a result of a successful, over-the-top image stitched together using an existing application (a little old, but nice technical details):
Breaking the Gigapixel Barrier[
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Soren Madsen
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