Panorama in PSE8 woes

[Graham00]

I'm having trouble creating a 'simple' panorama, it's merging 3 photo's ok but it's ending up looking like a bow tie !
Photomerge has several templates but why no letterbox ?

 

[Graham00]

it's not very clear but i've found it's the one at the bottom.

 

[Skyviews100]

Use Microsoft ICE, it's much better, and free