NEWEST TUTORIAL — Panoramic Stitches in Photoshop
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Step 3 - Correct Perspective
Your pano should now be stitched together, but it will probably need some corrections, depending on how good your shooting technique was. (See Screen Cap)
First, before we make any corrections, we'll flatten the image by choosing . (See Screen Cap)
Now press or . This puts us into mode.
Hold down or , click on any of the handles on the corners, and drag it to adjust the perspective.
By default, the handles will snap to the edges of the document and certain areas within the document. If this gets in your way, choose to uncheck the snap function.
Every photo is different, so you may have to play around with it for a while until it looks right. I always start by straightening the horizon line. Then I try to get rid of any strange distortion. If there are any vertical lines, make sure they are vertical, not tilted. (See Screen Cap)

