Don't use a wide angle lens for shooting panos. It will make the process so much harder, if not impossible.
I used a program called VR Worx a couple of years ago, and it did a pretty good job, and it wasn't that expensive. I don't know the status of that application as of right now, but I assume it is still around, and available for OS X.
At the very least, you should be shooting your panos from a tripod. And if you can afford it, get a Kaidan tripod mount that allows you to shoot perfect panoramas. Photoshop CS has a new panorama stitch function that I haven't yet used, but it sounds like it could help. It wouldn't make much sense to buy a new version of Photoshop just for stitching panos (though I assume you would use for a lot more than that), so just look into the specialized pano stitching apps.
P.S. apple used to make a pano stithing app back before OS X to help support/promote Quicktimes new pano capabilities called Quicktime VR Studio... it was an awesome application, but apple apparently stopped development for it long before OS X was released.