Hello Lee,
Mate, I'm not bias one way or another on brands. The Canon and Nikon models you are considering are both fantastic cameras. Currently I own a Canon 5D (soon to be upgraded to the new MKII) and a Nikon D300. For me the Canon is excellent with it's full size sensor and when used with the Canon 15mm f/2.8 fisheye it yields very nice results. The Nikon D300 is without doubt the best small sensor DSLR ever made to date and when mated to the Nikkor 10.5mm f/2.8 fisheye it is hard to beat.
That said, the trusty Sigma 8mm f/3.5 Fisheye works extremely well on either camera and is well respected.
It comes down to how many images you can live with when it comes to shooting panos. You basically will need to decide between 4+ or 6+T minimum unless you get a full size sensor camera and then you can shoot as little as 3 shots with the Sigma 8mm Fisheye.
Don't let Pixel or Jerry undersell their results either they have improved leaps and bounds and should be well proud of their work.
OK clean slate, If I had to start fresh and go shopping today I would purchase Hmm,......
Full Size Sensor: I would love a Canon 5D MKII and Canon 15mm f/2.8 Fisheye but it would be a hard toss up between that and a Nikon D700 and Nikkor 16mm f/2.8 Fisheye. Fact is, I would be happy with either!
APS-C/DX Sensor: I would buy the Nikon D300 over the Canon 40D, But I would buy a 40D over a 50D. So if was to go the Nikon you have to have the Nikkor 10.5mm f/2.8 Fisheye because it is a great lens. (Read the D300 conclusion on DPReview)
Budget Buying: Easy, Canon 450D/RebelXSi with Sigma 8mm f/3.5 Fisheye no risk! I wouldn't buy below the D300 in Nikon (Maybe D90) and I wouldn't buy the Canon 1000D because the 450D is not that much more and a far superior camera.
Bottom line, buy the best you can afford and really whatever that is it will be quite capable of great panoramas far exceeding the quality you get from any One-Shot mirror.
Regards, Smooth
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