I know that this is very late (happened upon it while reading about Poodll), but the upside-down video may just be that the ipad/iphone was being held "upside down" when taking the video. My understanding is that the camera has a definite orientation (Home button should be either down for portrait orientation or on right for landscape), but will flip the preview of the video or photo if held upside down. This flipping will continue if viewing the photo or video on an Apple device. When viewed on other systems - that don't read or understand the encoded "flip this image" instructions, the image is displayed as it was recorded - upside down.
This became more of a problem when Apple enabled the volume buttons to act as the shutter release. This made it more natural to hold the phone with the shutter release (volume) on top - like a camera. Which is really upside-down.