This panorama was made from 23 shots. I didn't do a very good job of keeping Δ&theta constant while moving the head, so unfortunately the Lucas-Kanade algorithm required a lot of fine tuning to get things to line up. I think the waves in the water greatly amplified the problem, since they were constantly in motion.
I made this panorama at dusk, so the ambient light was rapidly declining. I used my own camera which has a "panorama" mode, which locks the exposure settings throughout the entire sequence. This meant I didn't have to worry about the extreme differences in exposure that would otherwise have occurred between the sky and the ground. But I still had to make a choice between an overexposed sky or underexposed earth; I chose the latter.
Since I used my own camera, I had to calibrate it. I used Jean-yves' Calibration Toolbox, and followed these instructions.
I made no effort at all to rotate the camera around its optical center while making this panorama, so it was impossible to make both the foreground and background align perfectly (you can see doubled images in many places). This led to the black regions at the top of some segments.
This also meant Lucas-Kanade needed a little help, but I found that I could just give an initial Δt estimate anywhere within about 10 pixels horizontally to do the job. I used a wider blend-width (500 pixels instead of 200) to reduce some of the doubling.