iPhoto 5.0.4 Flips Photos Properly -- Apple has released iPhoto 5.0.4, a minor update that "addresses an issue with browsing photos that have been auto-rotated by a camera." Honestly, I've not seen the problem (it seems to relate to editing photos that were auto-rotated by your camera and that appear in the wrong orientation), but the speed with which 5.0.4 followed 5.0.3 means that it's probably bugging a bunch of people. The update is roughly 40 MB via Software Update or as a standalone download. [ACE]
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