I have the same camera and I have used it to take a few panoramas.
What you need to make sure is that you are on a tripod and that the dial is set to "M" for manual exposure. That way, you can make sure all the pictures will be exposed the same.
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With a camera such as the Rebel, it is more of a "lens" thing. You need to get a wide-angle lens for that.
If you use a wide angle lens such as a fish eye lens, you get distortion round the edges that are more difficult to correct and can make the picture more awkward to stick together.
You can use the lens that comes with the camera, it's more than adequate.
Make sure that when you take the pictures, they overlap.
Then it's just a case of stitching them together - I use Photoshop CS3, it makes it quite easy.
EDIT: just found
this site, maybe that can help.