When exporting from Photosmith, either locally to an iPad Album, or to the Internet as Flickr, Dropbox, email, etc., all photo rotations as set in Photosmith will be honored and exported as shown in Photosmith. However, photo rotations set in Photosmith do not sync with Lightroom.
We’ll repeat it again, as it’s an important limitation to understand: Any photo rotations that you explicitly define in Photosmith will not get synced to Lightroom. However, any image rotations set in Lightroom will get synced to Photosmith. This is due to limitations in Lightroom, and we are working with Adobe to resolve.
There are few situations where rotations don't appear in Photosmith as they do in Lightroom after a sync. As of Photosmith 3, we have found that these most often happen for images sourced from a scanner, where the rotation isn't explicitly defined or set in Lightroom. For example, when the scan was correctly rotated and didn't require manual adjustment in Lightroom.
If rotations aren't displaying correctly for you, uncheck the Use Lightroom Previews When Available option in File -> Plug-in Manager... -> Photosmith.