Sphereical VR panoramas are actually pretty easy to make. The equipment is expensive though.
What you do, is get a decent camera, or any camera really, but a DSLR is preferred because you can swap out the lenses. A 10-20mm lens is probably ideal for taking spherical panoramas, because it means you have a wider field of view, which means less shots are nessesary to get the full 360 degree field of view. In order to get the proper alignment of shots, you'll need to use a sphereical VR head, which can be pretty darn expensive. Once you have your camera mounted to the head, you have to adjust for paralax to make sure your rotating on the camera's nodal point; basiclly so that everything lines up and isn't distorted from rotation. Then, once you have your images, you bring them into a program like Stitcher by a company called Realvis, and stitch them into one big image. From stitcher you can export a 360 degree VR quicktime movie file, and boom. Easy peasy.
here's what a Sphereical pano looks like in Lat-long format:
Here's an example of the resulting VR panorama: