We generally suggest shooting so that adjacent images overlap by approximately 20 to 30%. Without knowing more about your camera and lens, we can't say how many images that would require, but it should be fairly simple for you to estimate the amount
of overlap while shooting.
The quality of the stitched result depends heavily on how well ICE can find and match distinguishing features between images. Obviously, moving subjects like people, water, and vehicles make this more difficult, but even simple things like plain,
untextured backgrounds and changes in lighting make it hard for ICE to find the correct correspondences. You may need to shoot with more overlap to make sure all your images contain features that can be matched. Or you may find it necessary to
shoot in a perfectly regular grid (using an indexed tripod head or a robotic panorama capture device) and use ICE's Structured Panorama feature if you want to shoot a very high-resolution panorama.
Eric Stollnitz, Interactive Visual Media Group, Microsoft Research