Kodak capture with 3700

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Joined: Apr 1 1999

Warning - Geeks only!!
Mac OS 9.1

I've just noticed that whenever I rotate the picture (at capture time) to portrait mode, the Finder icon loses the picture and shows a generic icon. This is only a minor point but it got me wondering about whether the rotate is achieved by a complete decode-recode or whether a 90deg rotate can be achieved with some direct block level transform.
The real point is does it lose any quality, so that it would be better to leave the rotate for subsequent loading to Photoshop.