To try to improve the quality or the panoramic images I made, with minimal effort on my part, I upgraded Hugin from 0.4 to 0.5 and the blending is a lot better. It also uses PTStitch from PanoTools. While the results are not perfect, it is a lot better.
The blending has improved noticably. Though it still limits to a blend width of only 100 pixels. For images this size, a little wider would be better.