Yes, the camera DEFINITELY has an orientation sensor, and correctly EXIF tags the photos. I can see the EXIF tags in IRFANVIEW, and the orientation field says the correct things for the landscape versus the portrait photos.

Every application I've got on the system that's supposed to handle the rotation of the photos automaticaly, *DOES* handle the rotation of the photos automatically. IRFANVIEW, Paint Shop Pro, etc., all open the photos correctly, rotating the photos to appear vertical.

Please note that in all cases I have NOT saved rotated/corrected photos back to the hard disk after viewing them in these apps, and any options to do so automatically have been disabled.

For instance, IRFANVIEW lets me choose whether to do lossless JPG rotation automatically, and I turned that off.

If I turn off the feature in IRFANVIEW that uses the EXIF tag to display the photo vertically, and then open the photo, it's sideways, exactly as I'd expect it to be.

What I'm trying to say here is: Yeah, everything is correct on my end of things. iTunes just sucks huge drippy green donkey balls, that's all.