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Sorry, but your camera only can work with SmartMedia cards. These cards are no longer common use. I your camera still can make great pictures, it must be like 12 years of age. It will be difficult to get memory cards for it. Don't try to put a card in the camera other than a SmartMedia, or you will decently damage the camera.
The panorama function on the Olympus Smartmedia card is a header on the card that allows the Panorama function to work on the camera, displaying "helper" lines on the LCD display and fixing the exposure to the first shot taken. Photos taken with the panorama function can be stitched together using the Camedia Software supplied with your camera. The Camedia Panoramic function is OK, but I prefer the results I get with PanaVue Image assembler.
The header is only available on the Olympus cards. But it can be written on any smartmedia card using the smprep/Winhex editor process using and a card reader/writer detailed on this forum. Use the search function for "pan smprep" and you'll find out how.