Hi. When the image is displayed, it does not seem to respect the EXIF rotation tag. There is an image cache Autorotate action (not in the core image cache stuff, and additional module called Imagecache Autorotate which is part of the Image Cache Actions module). Also browsers generally support it (so if you open the original JPEG as a file in the browser). So it works great for me anywhere on the site until it shows up in a shadowbox, then it's upside down (assuming the EXIF data was a 180 degree rotation).

The expected/supported values in the Image Cache action are:
Tag: 0x0112 Orientation

1 = Horizontal (normal)
3 = Rotate 180
6 = Rotate 90 CW
8 = Rotate 270 CW

Thanks.

Dan