Ok one thing at a time.
Firstly inserting a sky texure.
If you have not done so, first make a new folder where you will assemble your new scenery.
Yes you need to make 16 bitmaps each 256 x 256 of your panorama.
I might be able to help you with that if you send it to me. You want to take a stab at it then you will need a good paint program that will allow you to scale your scene first. Break it into chunks of 256 x 256.
After you have finished that, open FMSXYZ and create your new scene.
From your new scene dialog box, I suppose you chose a panorama scene option.
Three tabbed choices are listed below.
Sky,Height Dist , & Landscape
Choose Sky. You will have a single box below it. Click inside the box. You will have a file requester where you may search through your directory for a sky texture. Any might do for now, borrow 1 from another scene. You can easily change it later.
It should be a 256 x 256 sky map, but I believe it will work with 1024 x 1024 also.
All picture boxes work this way in FMSXYZ. Just click inside to change it.
After loading a skytexture, go on to Lanscape. It is not necessary to load a Height Dist Map when you have a panorama. Again click inside the boxes. You will get a file requester which will allow you to load in scenery.
After Naming your scene click OK and you will be able to save it.
This will be the core of your scene where you can start adding objects to your scenery.
You should be able to fly it at any time from this point on.
Let me know when you have caught up to this point.
Perry