Panorama not working.how can i adjust it?

This has to do with the settings.
Go to your user manual and look up the settings in the menu, if you don't have a manual, download one. Use google.com and input your camera and the model similar to this... " Olympus FE-170 user manual pdf ' This should get you to what you need, down load the manual and view it to see how to set the menus.
You can set all the menus to factory default or reset all, or some thing similar in the menus.