I've shot panos up to about 30 frames. I almost always shoot raw, but if you take that many frames it might help. One problem with panos is that changing lighting, as clouds shade a portion of the landscape, and then the scene re-emerges into sunshine, is that this can become less than seamless. Shooting quickly helps. However, surely the indexing of your camera through the panorama takes far longer than any slightly longer time needed to save the larger RAW file to your memory card. So I would personally stick with RAW format. An indexing panoramic tripod head is most important for this kind of work, in my opinion. One problem I have is that when shooting large segments of the sky, there is often not enough detail for the software to align the stitched image in the portion that is the sky.
Here's a pano I shot that ended up with a 1:15 aspect ratio. It's a linear array, probably around 15 exposures stitched together.
There's a big watermark running through it. If you go up a level on my website you can see the whole thing in a 200px tall "Thumbnail", 3000 px wide, with no thumbnail.
http://www.gregscott.com/pano/20110503_1804_100_4813_gjs_new4.html
Stitching problems get more severe (particularly changes in light) when shooting a rectangular array. It's much more likely for light to change from one row to the next in a multi-row shot matrix.
I've never managed to stitch a spherical array. I suppose I need more specialized software to do that than Photoshop/Lightroom.