Got this one from Eugenia vimeo.com/eugenia here at Vimeo. Sorry for the crapy sound!
1) I use two thin, stretched out rubber bands (about 2 inches when relaxed) work the best, a gossamer connection between you and the tripod
2) In general cranking the pan resistance up yields the best results.
3) The smoothest pans happen when the tension is enough that the ruuber band is stretched to 75% of it's max (about 8-10 inches) when panning.
4) The rubber band also allows the head to slowly come to stop as the band contracts after you've stopped panning.
5) You can bundle several around the pan arm on your tripod and never be without.
More no budget tutorials here: Jay Boy's No Budget Tutorials