Photo's STILL do not auto rotate according to the EXIF information embedded into pictures by 99% of digital cameras.
When viewing photos that are manually copied to folders on the computer, Windows explorer does not rotate them automatically for the thumbnail views.
Also, when photo's are displayed in the Photos Screensaver, again they do not auto rotate portrait shots.
Most other applications do this (photoshop, paint shop pro, acdsee, etc etc.) within the thumbnail view and when opening a photo, so surely it MUST be possible within Windows 7 itself.
Just use the emebedded EXIF orientation info that digital cameras add to photos.
Add an option within Windows Explorer advanced options that allows you to turn-on/turn-off 'Auto rotate portrait pictures'. This should calm the people who still want to crane their necks over the left or right whenever a portrait shot is displayed in landscape orientation.