This is one of my handheld HDR's. It's always a little bit of a hit or miss. A lot of them are really not usable, either not sharp enough or they can't be aligned at all. Usually I don't bother and just go to another photo. Just when I see that the photo is really promising I stick with it :). What I found, that a great way to do it, is to tonemapp just a single exposure, and then just mask in parts, which need to be fixed. Usually when you cannot align the whole image, its still possible to align a smaller part.
With this photo I had absolutely no problems :). The alignment worked perfectly, I just had to correct the moving people. This is the Hanavsky pavilion, which is situated on a hill above Prague. There is a great view of the city from here, and you can actually see it a little in the bottom right part of the photo.
HDR from three shots, taken with Canon 450D with Sigma 10-20mm lens, handheld.