The issue appears to be that your server doesn't have the exif library installed. That is the library that is used to determine the orientation of images uploaded from a camera and detect the orientation so it can be rotated properly.
I was able to resolve the issue by uploading an alternative library and detecting the missing function in the code. You can fix it by copying the files:
webassist/plugins/catalog/scripts/resize_image.php
webassist/plugins/catalog/scripts/exif.php
webassist/plugins/catalog/scripts/makers/ (the entire directory)
After updating those files on your shopfullhorse site the issue has been resolved. You can take the files from that site to fix it on others that have the same issue.
After updating the files you would have to delete the folder:
webassist/plugins/catalog/scripts/image_cache/
That would force it to re-generate any images that were wrong.
