@MichaelFfm, the Photoshop plugin has settings for many different types of panoramas. Be sure you choose the correct one when uploading a full 360.
@bubbalooey, there are no photo-editing tools in Photosynth: either for panoramas or photosynths, at this time.
@rsanabria80, not at this time. I suspect that this is because the app has to hold all the photos in your phone's RAM while you finish shooting the panorama and if they were all 5 megapixels, the app would become slow or crash, but this is just my guess. I also guess that in writing the app, they made if for the lowest common denominator: the iPhone 3GS and the resolution of the photos is somewhat based on what that phone can take. Maybe not, though.