I'm seeing all photos taken on and sent from Android devices rotated 90 deg clockwise from their original orientation.
Is this a known issue, or is it Too Localized? If known, is there a workaround?
While this isn't the ideal fix, there are free apps like Fantasia Painter Free in the WP7 marketplace that you can use to rotate those photos.
With the new Windows Phone 8, basic image manipulation like rotating the image is now supported.