One of the new features of Android 4.2 and the Nexus 4 is a camera mode called "Photo Sphere". This new camera mode, shown off in a quick promotional video from Google, is a mash-up of the traditional panorama mode offered starting in Android 4.0, and something like a "Gigapan" photo.

Basically, the Photo Sphere overlays a UI with a starting point for you to take your first photo. After it is taken, It'll give you another point of reference to take a photo that is overlapping onto the first. Over and over you take pictures that overlap one another until you have a large area covered. It takes some time to render, but you are then presented with a large scrollable panoramic image that will remind you of street view in Google Maps. It's quite an interesting idea, and we can't wait to get our hands on it.

More: LG Nexus 4 Forums

 
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Google releases Photo Sphere panorama mode promo video

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Sounds like the app 360 Panorama which does a good job, but is hard to share with others. Hopefull this will be easier to share (and maybe intergrate with the site 360 Cities).

360 Panorama seems to be a bit misleading. The description for the app reads "full spherical panorama," but when I look at the preview it appears to only be a panorama of the traditional sense. You can spin all the way around but you cannot look up and down like you can on Google Street View.

Actually, Apple may not but I'm not sure about Microsoft. They have an app called PhotoSynth on the iOS App Store that does essentially the same thing. Just thought I'd mention it.

That's my question. Does this JB Sphere camera take a real 360 degree panorama; like covering the sky and ground too, or just horizontal 360 spin?

The free Photosynth app on iOS works well at taking complete spheres too, and it can be shared for viewing through a PC as long as you uploaded it to MS's photosynth site.
I really missed this app when I moved from iOS to android.
So I am looking forward to Photo Sphere.
I wish it allowed higher res panoramas.