Dear Chris
Our converter is currently unable to process black & white panoramas. We are working on a solution. In the meantime, please saturate your images just an invisible tiny bit, for example instead of 128,128,128 gray try 128,128,127. This will trick the converter into thinking it's not a black&white image while in fact it will look like one. I'm sorry about this bug but this is the only workaround I currently know about.
Jan