The image upload function (only from the new [post] page, not from [image upload] which is deprecated) now tries to deal with image orientation. As far as I know this is only an issue with the iPhone (and I think maybe only with older iPhones.) The problem is that when you take a portrait style (as opposed to landscape style) image the iPhone adds some exif data to the image file noting that it is rotated, but it doesn't actually rotate the image. When viewing the image some display programs know to look for the orientation data and rotate the image, but most do not (like, for instance, Apple's own Safari browser - wtf Apple?) So when you upload an image like this it will display as landscape even though it should be rotated 90 degrees. The upload script here now looks for the exif orientation data, and if present it actually rotates the image for you.
I'm only mentioning this so that people will speak up if this screws up and rotates an image that should not be rotated. Thanks.