If your program is Photoshop Elements, then you have posted in the wrong forum. Somehow your thread got posted in the Adobe Premiere Elements Forum (video editing).
Please re-post your thread in the Adobe Photoshop Elements Forum whose link is
For a moment I will put on my Photoshop Elements 11 hat and ask "Are you working in the Quick or Expert workspace of the Photoshop Elements 11 Full Editor?" If you are in the Quick workspace, please switch to the Expert workspace, and explore
and the categories under Photomerge. When you are in the Expert workspace, I suspect you will then find Photomerge Panorama link active in that group of Photomerge choices.