We did this twenty years ago in high school. Minus the computer.
It's called a panoramic picture. You use a tripod and measure off the degrees around 360, take picutes all the way around, then expose a larg peice of film to the negatives, lining them up and blocking off the rest of the film.
It was a project we did in photography class.
Now days you do the same, take pictures around the 360, then edit them with a computer to create the virtual tour.