How to convert 16 mm fisheye images for QTVR.
Before you Begin
There are a few preferences in PanoTools that must be set correctly BEFORE you attempt to correct the image. Select the remap mode in PanoTools and click the "pref" button. You should see the preferences come up as shown. Select "Create New Image File" as shown above. Make sure "Display Cropped/Framed Image" is OFF! (Note this is NOT the default.) Click the Set button and tell the program where you want PanoTools to save the result file. (I usually use the Desktop.)
Step 1
It is very important to start with a full un-cropped and un-resized scan. If the scan has been randomly cropped or re-sized it will be almost impossible to find the center of the horizon (Indicated by the green line.) It is also important to do your radial color correction and wrapping or blending of the panorama prior to this vertical cropping step. You need to start with a perfect 360 degree seamless image. You can check this with the offset filter in PhotoShop. See the tutorials on Color correction and Wrapping & Blending Panoramas.

When you are sure that your panorama has a full perfect 360 wrap you may proceed to crop the vertical height. The cropping table below shows the recommended cropping sizes for each camera resolution setting. Your image MUST match one of the horizontal widths in the table prior to performing the crop. This table assumes that your camera was set to 54% scaling when you shot the image. If the image scaling was not set correctly in the camera at the time of shooting. then the sizes will not correlate to the standard widths for a 360 indicated in the table below. In this case you can use PhotoShop to scale the image to the recommended widths.

After you have selected the appropriate height for your panorama use the Canvas Size tool to crop the vertical height of the panorama. As shown in the example below. You could use the manual crop tool in PhotoShop. Using the canvas size tool ensures that you will crop symmetrically from the center of the image.
Step 2
Now that your image has a vertical crop of 160 degrees or less you may remap the image to cylinder projection using the remap function in PanoTools. You want to select PSphere to QTVR. You should enter in a horizontal width of 360. It is not important to enter in the Vfov because it is calculated automatically from the assumed width and the aspect ratio of the image. In this case someone entered 120 degrees which will be overridden by the automatic calculation. PanoTools are available for free at: http://www.fh-furtwangen.de/~dersch/ It is important to leave enough system RAM free for PanoTools to do it's magic. If PhotoShop is hogging all the memory then PanoTools may give you an error about running out of memory. In this case try reducing the amount of RAM you have allocated to PhotoShop to allow more free RAM to be assigned to PanoTools.
When the image is done it will appear as a completely new file. (Usually it is on the desktop and the file is called ptools_result unless you set the preferences differently.) Open this new file and it should look like the image below.
Note that the more vertical field of view you select the taller the image will get. Be sure this image is evenly divisible by 4 in both directions for the Apple QuickTime VR Authoring Studio to accept the image. Also the Authoring studio will dice much faster if the file is rotated 90 degrees CCW with the sky on the left. In addition Authoring Studio dices much faster on PhotoShop files rather than PICT or TIFF files. You may want to rename and re save your file as a PhotoShop file.
NOTE!!! You will NOT be able to perform any more remapping until you move or rename the ptools_result file. PanoTools cannot save over a file with the same name. You will get an error. It is very important to rename the output file after each image that you remap.
Step 3
Open the Authoring Studio and select New Panorama. Import the newly remapped panorama into the panorama Project. If you have pre-rotated the image so that the top of the image is on the left in PhotoShop the image should come into Authoring Studio right side up. You should NOT have to use the rotation buttons. If you do use them to make the picture right side up it will take much longer for Authoring Studio to build the final movie.

You should now be able to adjust your movie settings as usual and make the movie. The resulting movie should look relatively normal.

The zoom limits don't quite translate the same way as a normal panorama. The range needs to be more narrow to get acceptable results. I usually limit the zoom out range to no wider than 70. The zoom in limit is dependent on the resolution of the source pano and the size of the player window you select. I recommend a starting view angle of about 40 degrees with the wide field movies.

It is also sometimes necessary to reduce the vertical tilt range by 1-2 degrees to make the picture look normal. To do this un-select the "Auto" checkbox for tilt range and manually enter the vertical tilt range. Try shrinking this tilt range 1 degree at a time until the picture looks properly corrected.

If you see strange distortion such as the horizon bending upward or downward this means that you did not crop the panorama symmetrically from the centerline. If the horizon bends up then you need to go back to step 1 and remove pixels from the bottom. If the horizon bends down then you need to go back to step 1 and remove pixels from the top. Repeat steps 2-3 until it's perfect.

Click Here to see the finished Movie!!!!
Panoscan thanks Eric Poppleton for use of this image to demonstrate this process.
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Note:

Although these high angle of view QTVR movies will play with QT 4.0 they look MUCH better with QT 5.0.