You are not doing anything wrong. Your example helped us find a bug in ICE that was causing parts of the panorama to be cropped while correcting for lens distortion.
We've fixed the bug in the latest update (ICE version 2.0.3), which you can download from the ICE home page (http://research.microsoft.com/en-us/um/redmond/projects/ice/), or by accepting
the automatic update next time you start ICE.
Thanks!
Eric Stollnitz, Computational Photography Group, Microsoft Research