When editing the images in Photoshop, this is what I do:

1. Open pict file
2. Rotate to a horizontal position so that I can see it correctly (QTVR Pict files are verticle)
3. Start on the left and carefully pan over the entire image looking for mistakes, sun flare, and stitching errors.
4. Remove lens flare, minor stitching errors, and minor retouching with the "clone stamp" tool
5. Adjust overall density and color balance, if neccessary by using LEVELS for density and HUE/SATURATION or COLOR BALANCE for color.
6. I check the PICT image file size by going to IMAGE--> IMAGE SIZE and changing the pixel settings! You can use the chart below or go to the page about sizing the images for more information!
7. Save each image as you have resized it. Be sure to choose "Save AS" so that you do not save over the last image. Also, be aware of where you save the image! This can become quite confusing!