I'm having the same issue using a Motorola DEXT in the UK. It's infuriating. The camera clearly takes portrait pix orientated correctly, and they appear in the Gallery correctly, in portrait mode. And when you sync with Picasa via a USB cable they're orientated correctly on your computer. But if you use the Share option to send a portrait-oriented pic to Facebook, Twitter (using any of the Twitpic type services), Picasa, or send via SMS, they always appear on their side, in landscape mode. It's a major drag.