Merging panorama problem with lightroom and photoshop

Which method are you doing?:

1. LR>Photo>Edit in>Merge to Panorama in PS...

2. LR>Photo>Photo Merge>Panorama...

I prefer #2, because you end up with a DNG file.

I have tried both. Neither are working. Photoshop opens up but my image doesn't appear. I tried with my old catalogs and they work fine but my new images still won't work even when I created a new catalog.

They won't even open in photoshop if I simply want to do more editing in there. Photoshop will open but instead of the image it's just the main screen. I didn't change anything in my camera setting I think that would cause this. I contacted Adobe and they didn't help me at all.

Option 2 listed by John above will not result in Photoshop opening but rather in having Lightroom perform the merge.  Are you saying that Lightroom will not perform the merge or Photoshop will not perform the merge, or are both programs incapable of merging the files?