By using layers, you can take several photos from one location and merge them together to create a large panoramic photo.
Many people take an assortment of photos of a subject with the camera handheld. Pros know it's better to use a tripod and slightly move the camera to create overlap. There are even specialized tripod heads that can be bought from companies like Kaidan (www.kaidan.com) that make the leveling and rotation much more precise.
Let's try piecing some photos together. If you are using Photoshop CS or later, use the Photomerge option. If not, place all three images into a larger document and manually line them up.