As from now, Google Street View lets you learn more how they turn Photos into Street View.

Today, Connectikpeople has received this glimpse into what the team is doing to bring Street View to you.
We have discovered that, first off the team needs to actually drive around and photograph the locations to show in Street View. They pay close attention to many
factors, including the weather and the population density of various areas, to determine when and where can collect the best possible imagery.

To match each image to its geographic location on the map, they combine signals from sensors on the car that measure GPS, speed and direction. This helps them reconstruct the car's exact route, and even tilt and realign images as needed.
 

To avoid gaps in the panoramas, adjacent cameras take slightly overlapping pictures, and then they "stitch" the photos together into a single 360-degree image. They then apply special image processing algorithms to lessen "seams" and create smooth transitions. You can learn more via this website: http://goo.gl/ND3dQb