There is an horizontal flip problem in P3dO with .psd (photoshop files), but it is a P3dO bug nothing to see with XP or any graphic card. That bug as nothing to see with a vertical flip. This is a more than one year old bug which I didn't give a high priority, should I ? Speaking about vertical flip you should be aware that Windows bitmaps are stored upside down. The first row in the picture is the last in the file. So when you read a Windows bitmap you have to flip it vertically in order to display it (in order to display any picture on a PC that picture must first be converted into bitmap). If you don't do this the picture is inverted. Some "clever" display driver or software with an automatic flip-the-bitmap option could trigger that strange behavior. Look for updates for your graphic card drivers and also look at the PSP7 options but first try with another picture editor.

Yarp - author of P3DO Organizer for Poser