Photo Rotate 1.5 has finally been approved by Apple (after longer than normal delays, no doubt related to the OS 3.0 release today). It should be available from the AppStore anytime now.
* This adds a powerful "Crop" button - this lets you do arbitrary rotation, scaling and positioning using single and two finger gestures.
* Full OS 3.0 Support (but not required, works with OS 2.2.1).