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2. Why a Mirrored Ball 'sees' the entire' environment
But first, a very brief introduction into why a Mirrored Ball works the way it does - that is: 'seeing', nearly - and this will become important in the next sections, the entire environment 360° around.

Fig [2.1] - Basic Mirrored Ball setup
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Figure 2.1 shows a basic setup of Mirrored Ball, represented by the green circle, and a camera, represented by the blue dot and lines indicating its Field of View.
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Fig [2.2] - 180° degree spread?
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This camera appears to see, at best, half the Mirrored Ball - which may lead you to believe it only 'sees' 180° of the environment, as illustrated in Figure 2.2. However, the Mirrored Ball is reflective - and thus the law of reflection applies : "the angle of incidence equals the angle of reflection". As such, we have to determine just what the Mirrored Ball reflects by looking at the angle that the camera's view makes to a point on the Mirrored Ball.
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Fig [2.3] - Law of reflection at work
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Figure 2.3 shows the result of doing exactly this, indicating the view angles and their reflected angles in red. As you can see, the further the angle of the camera's view nears the edge of the Mirrored Ball, the more outwards - and eventually forwards (that is, behind the Mirrored Ball) - the reflected angle becomes. In fact, the maximum reflected angle is reached at exactly the edge - this angle is also known as the tangent angle.
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Fig [2.4] - Larger Ball, or shorter distance
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This tangent angle is entirely dependent on the distance of your camera from the Mirrored Ball and the size of the Mirrored Ball. The camera's field of view is irrelevant to this angle, as you can see because the field of view of the camera is quite a bit larger than this tangent angle
You can calculate this tangent angle by using the formula : arctan(opposite/adjacent). Where 'opposite' refers to the radius of your Mirrored Ball and 'adjacent' refers to the distance between your camera and the center of the Mirrored Ball. 'arctan' refers to the arc tangent function of the result value. Most pocket calculators will have this labeled as arctan, atan or tan-1.
Figure 2.4 shows the effects of varying the size of the Mirrored Ball and the distance of the camera to it.
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Fig [2.5] - Less detail at edges (backside environment)
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Note how the the angle between the reflected angles becomes much larger as the angles of the view of the camera reach the side of the Mirrored Ball. What this means in practice is that a proportionally large part of the environment's reflection, that which is 'behind' the Mirrored Ball will be concentrated at the edge of your Mirrored Ball - being compressed, as it were. Given that both film and digital camera CCDs have a limited resolution (grain size in the case of film), it means that more of the environment will be packed into less grains or pixels at the edge of the Mirrored Ball. As a result, that part of the reflected environment will be much less detailed, which also shows in a result transformed panorama.
Figure 2.5 shows such a transformed panorama, taken from a theoretically ideal setup. The red regions are reflections of the environment above and below the Mirror Ball whilst the blue region is a reflection of the environment in front of (i.e. reflecting back to the camera) the Mirror Ball. Focus on the distortions in the green region. This region are what is at the 'back' of the panorama, i.e. what was 'behind' the Mirrored Ball. You'll notice there is some blurring going on in its center. This is where the resolution was too low due to the compression of the environment towards the edge of the Mirror Ball
Sections 3 and 4 will go over more realistic setups and distortions resulting from that.
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