I've taken dozens of photos on a trip I took over these past few days, and the photos I've taken that are oriented vertically are uploading as oriented horizontally in XF 1.2. In Win8's Explorer, viewing the thumbnails and using the preview, and also while opening in Photoshop CS4 or CS6, the same photos are oriented correctly. (The camera has the ability to save the orientation information in the photo--it is a Sony DSC-W150.)
If I open the photo and save a copy of it in Photoshop, however, it will then align properly. I do not have the luxury of Photoshop on a smartphone, however, so I was unable to upload those vertically-oriented photos to our test forum while on the trip.
I tried these photos from three devices: my Nexus 4 (running the latest Jelly Bean with the native Chrome browser), and both my laptop and desktop computers, running Windows 8 with the most recent Chrome browser.
@Mike, I can forward you a couple of known images that appear incorrectly in the posts. Let me know.