How to make a 360o camera?

[Steve Berezin <sbere@xxxxxxxxxxxxx>]

I am new to the list so please excuse this question if it is too basic. 
I wanted to know if a panoramic 360o camera can be made simply by
arranging small cameras in a circle with the lenses pointed outwards and
using stitching software to put the resultant photos together.  Either
by using digital cameras or by using film cameras and triggering their
shutters simultaneously. 

I see no reason why it wouldn't work but I see no cameras like this. 
Also what type of distortion would this introduce?

Thanks,
-- 
Steve Berezin
mailto:steve@xxxxxxxxxxx