These days, many cameras have a panorama setting, where you have to manually align several images which the camera then combines into a panorama. Sweep panoramas have been invented, all you have to do is sweep the camera from one edge of the scene to the other, therefore improving efficiency and precision.
All you need to do is shoot the images you want to combine, then open them in elements.
Go to file>new>photomerge panorama. You will be directed to a window where you can select your prefernences. Your mode options are shown on the left hand side. Check auto. Select use open images. If you have a later version of elements, you should also be able to select vignette control, and distortion correction. Click OK. The computer will now spend about a minute working on your images, combining them and blending them. Some of the images will be cut out, or layer masks will be applied to help combine the images smoothly, so the image may not be completely accurate. If you do NOT want your computer to do this, go back to your options window and select reposition only.
The edges of the final image will be jagged and seemingly distorted. Select crop tool, and crop these out.
You now have your final panorama. Pleae note that thanks to layer masks, photoshop may edit several parts out of your images to make them fit.