A Panoramic image is created by rotation the camera while rendering to create a full 360 x 360 degree image.
You can create Panoramic Views by check the make Panoramic View check box on the Render Setup Tab dialog.
Most software to process Panoramic Views requires that the aspect ratio be 2:1 (e.g. 2000 x 1000) pixels. So the rendering resolution will automatically be set to a ratio of 2 to 1.
You can view the flash movie made from the Panoramic image here: Panoramic Viewer
Hre is an article by Scott Onstott which explains how to download and use a Smustard ruby script to create panoramas from SketchUp models. Creating Panoramas in SketchUp and Pano2VR