Gday John, Sage Thumbs (which just updated itself, but didn't fix the MEP problem). I've checked other programs: Picasa, Photoshop, Xara PGD all show the thumbnails up the right way (as does Windows Explorer, of course).
In explorer All I see is the normal Photoshop psd icon. I can only see what it is in either Photoshop (or associated Adobe product) and MEP /VPX. I'm assuming you have something that shows the images in explorer. Could it be that causing the problems within MEP?
I can see the file is quite small (Smaller than any of my psd files by some margin) but what other benefit do you have over using a psd file over say a gif?
Gday Ray, yes, I'm using Sage Thumbs to show my PSDs in Windows Explorer.
I'm constantly fiddling with those types of images (changing the text or image bits) and as you know PSD is lossless and layered. The best part is MEP and Xara accept them natively, so I don't have to flatten them every when I want to use them.
So my guess would be if you alter one of those files in Photoshop, somehow after the alteration, Sage is reading the resulting file wrong or adding a tag that then makes MEP show its orientation wrong. Like having two sets of conflicting instruction sets.