I was tired of having to locate pictures on disk and open them in ICE. So I went searching and found this great button to launch ICE from within Picasa. The button is a bit old and the instructions on where to place it are no longer correct, but the button still works in Picasa 3!
Here is the page: http://olalindberg.com/blog/2008/10/11/picasa-microsoft-ice-button/
Here is the link to automatically install the button in Picasa (Automatic Install)
Now if you to want to download the Manual installation file (you can get it HERE)
You want to save it into this directory:<your user folder>\AppData\Local\Google\Picasa2\buttons
And you must have Microsoft ICE installed to this directory: C:\Program Files\Microsoft Research\Image Composite Editor
Now just select your pics and hit the “Stich…” button in Picasa!
Local Link: picasa2microsoftice_v1