Using a panoramic image for the sky?

I guess the headline tells most of the problem, but ill explain it anyways.
I have the panoramic image, and i want to apply it to my blend, but i dont want to make a skybox or skydome (if i have to).
So in the world buttons, i set the texture of the world to be the panorama, but then what?, there are so may buttons?

Try creating a tube then scale it up to surround your scene. then scale it in the z direction in order to just be out of camera view. Then apply your panorama to the tube. Just a thought.
this was done in Collin litsters tutorial of a new ocean…Which is phenomenal by the way you can see it on Cogfilms.com. It is in the last (4) PDF.
good luck