Hi there! Glad to see you got a couple of synths uploaded today. =)
In the case of objects like this, it is better that either the object stays still and the camera moves around it (in your case the mug should stay stationary on the counter) or, for an alternate approach, the background behind the object being rotated is completely blank. For this second approach, you could drape a blank sheet of paper under and behind the mug so that Photosynth has nothing else to lock onto besides the mug, provided the paper doesn't have visible texture on it.
You can read more about the turntable approach on Page 5 of the Photosynth Photography Guide, available for viewing and downloading at this link: http://photosynth.net/help.aspx#photosynthhelp
Photosynth can only reconstruct objects which are stationary between different shots and, in this case, the background of the shots had too many common elements in common for Photosynth to ignore.