A camera that provides for a panorama mode of operation that employs internal software and internal acceleration hardware to stitch together two or more captured images to create a single panorama image with a wide format. Captured images are projected from rectilinear coordinates into cylindrical coordinates with the aid of image interpolation acceleration hardware. Matches are quickly determined between each pair of images with a block based search that employs motion estimation acceleration hardware. Transformation are found, utilizing regression and robust statistics techniques, to align the captured images with each other, which are applied to the images using the interpolation acceleration hardware. A determination is made for an optimal seam to stitch images together in the overlap region by finding a path which cuts through relatively non-noticeable regions so that the images can be stitched together into a single image with a wide panoramic effect.