Check your paths in the config file.
I had a similar problem, but tweaked the file and all is okay now.
The file should lokk like this...
define("_URL",$config['phpurl']."/pano/"); //URL to the Pano Folder
**** this is simply the path from the root directory of threads - normally just /pano/ if you added it to say /threads/
define("_PATH",$config['path']."/pano/"); //Path to the Pano folder
**** again the path from threads directory
define("_PATHPANO","/the/full/path/from/server/root/wwwthreads/images/panels/"); //path of dir where panels are saved
define
**** this the full path from the server root.
("_URLPANO","http://www.eaxample.com/wwwthreads/images/panels/"); //URL of dir where panels are saved
**** this is the full URL.
define("_wrongrefer",$config['path']."/pano/refer.png"); //path of the wrong referer image
*** this is from the root of the threads directory.
Hopefully this should then work - it does for me now - so hopefully you should be okay as well.
Ian
at the moment - but expanding all the time....) 
