(Over 1 year ago)
Looks like it worked better the second time :)
ICE just couldn't work out what to do with the moving water. It needs still portions of the scene to figure out how the camera moved.
Sometimes you can fix this via the File:New Structured Panorama .. menu in ICE. If you've shot in a fairly consistent manner then this may work. That's how all the really big gigapixel results worked out what to do in the sky.