The program that shipped with the Panosphere 360 only outputs an area of 320 x 240 pixels from the entire image. By editing the .avi file in VirtualDub, I've got video of reasonable quality at 720 x 576 pixels. Much better than before!
I'll continue experimenting with the video editing process to see how well I can correct the effects of a fisheye lens. Not that we always want to do that - in many cases, the view is much more interesting. But it's nice to know I can mount that camera on a blaster and have lots of options when documenting a review or a Nerf war.