I found 2 potential solution to this problem, for window users. I am using window 7 Pro SP1 and iphone 4S on lenovo T430s
1st solution for people who is important NEW photos from iphone 4S and should also be set from now on so that you don't need to use solution 2.
take some photos with iphone 4S and then plug into computer, when the import dialog occurs, click the import settings, then click "Restore Default" button, then change the setting of "Foldername" to "Date Taken + tag". When you click okay, there will be a message that the settings has to restart......After the import, you can edit/rotate the photos. I suspect the 'magic' happens when the settings was restarted and the photo was imported 'correctly'. If you leave the settings untouch, subsequent photo imports will still have the mess up photos metadata! So this method is troublesome, but at least it saves me the trouble of correcting multiple photos.
This seem to solve the problem for me. Please try it and see if it works for you. if not, please post here.
2nd solution is for people who have already some imported photos that have the corrupted metadata. This idea is from tomhardware forum. You need to download stripper from http://www.steelbytes.com/?mid=30&cmd=download&pid=15&lang=eng
After download, you will see a folder with the program in it. Any photos that you drop onto it will have the metadata stripped and the file saved back to the original location. What happens is information such as date/time, camera information, GPS location of photo taken are all stripped. These photos can then be edited, rotate normally.
NOTE: You can run the software and click the "Preserve file date and times" so that at least this information is preserve while the rest of the information is stripped.