In this paper, a low-complexity video stitching algorithm and its system prototype are proposed. With the novel design, users can obtain a high-resolution, high quality and seamless 360-degree panoramic video immediately by stitching the images with overlapped regions. Most of the present works are focused on image stitching instead of video stitching. In the proposed design, we develop some novel methods to solve the problems encountered in video stitching. First, we provide a new blending method to remove the color difference in video stitching. Moreover, we avoid the moving objects in the overlapped area by using the dynamic seam adjustment scheme. Finally, we remove the drift problem and obtain a better visual quality while displaying the 360 degree panoramic video scenes. The implementation results show that the entire system achieves 4-channel D1 30fps real-time video stitching on an Intel i7 3930K CPU 2.3GHz machine with 8GB DDR3 memory and Linux Ubuntu 12.10 operation system.