This thread looks a bit confusing to me. I wonder if people really understand what the orientation tag really does.
A JPEG image has a resolution (A x B pixels). On most camera's, this is done in a 4:3 ratio, meaning the image can be, for example, 1920 x 1440 pixels, on a 2.8 megapixel camera. In normal use, this means A is the width and B the height of the image. That's landscape mode. In portrait mode, the camera is turned 90 degrees, and obviously the image will then be 1440 x 1920, where the first is still the width and the second the height of the image.
Now, some camera's have an orientation sensor inside, which tells it whether it's turned on it's side or not. If a camera doesn't have this feature, you will always have to rotate the image with some sort of software that can modify the image. This will actually change the resolution (from A x B to B x A). But, if your camera does have this feature, you will, in most cases, not have to modify the image afterwards anymore - most image viewers recognize the orientation tag that has been set to the image (saved in the EXIF data of the JPEG image), and will display the image accordingly.
The problem here, it seems, is that the iPhone does not deal with this feature well. I've read two situations:
1) iPhone images taken in portrait show up on the iPhone, and in iPhoto or Preview correctly, but uploaded to a website (or lets say, viewed in non-Apple software) incorrectly (KassieWalker's problem)
2) Portrait images taken from a digital camera and uploaded to the iPhone show up sideways on the iPhone (in other words, the orientation tag is ignored) (driver49's problem)
I myself have a Canon DIGITAL Ixus 850IS (or PowerShot SD800IS, same thing, different country), which also stores EXIF orientation data, but when photo's are synced to the iPhone using iTunes, they all appear in landscape mode.
My conclusion: the iPhone (and all other Apple software) uses a non-standard way to save orientation information. This results in 2 situations:
1) iPhone pictures do not contain valid orientation data as far as non-Apple software goes
2) Either the iPhone ignores valid EXIF orientation information, or it is stripped by iTunes reformatting
To me, this looks like a bug (more along the lines of a bad design choice than a little typo error here or there) on Apple's side.
For me, this is not a big problem. I don't want my full set of photos on my iPhone (currently this is > 9 GB of data, and the 'selected' photo's are still as much as 4 GB in total), so I only take the best ones, copy them to a seperate location and have iTunes sync that location with my iPhone. It's not a big problem to rotate those images manually (we're talking about 236 pictures right now, of which less than half is in portrait mode). But, I do think it would be much nicer if Apple would follow industry standards in this case.