NEX 7 Panorama Mode Problem

I tried both the SEL 18-200 and the kit lens SEL 18-55 and both did the same thing. I followed the direction arrow; up, down, right, left, moved slower, moved faster, used monopod, hand held, inside, outside, wide angle etc. Could never get it to say anything other than "could not create panorama, move in the direction of the arrow".

Anyway, another strange thing, I used the level to take some photos in the house and it seemed to me that the photos I took with the level when it showed green were not really that straight when I viewed the photo.

I wonder if the two problems could be related in some way. Anyway, Sony service, has my camera now and we will see what they find out.

Thanks,

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D. Zimmerman