I did this little .mov up for a true 360' Panoramic view near Ironforge. To get it to work, select a part of the screen shot and while holding down the left mouse button, drag it back and forth to see the whole panoramic.
Its pretty simple. First you take a bunch of overlapping pictures. I think this series took 8 pictures. Then using a panoramic photo stiching program, you merge them. The program I use that came with my camera also has the ability to stitch 360' panoramics and converting them to an interactive .mov file.