Setting wallpaper - wrong orientation

[dracan]

I'm trying to set the wallpaper on my Nexus7, and no matter what I try, the blue "crop" widget that lets you specify the area of the image that is the wallpaper is always in the wrong orientation. So when I make this widget as large as possible, it's only covering part of the image. The image size is 1280x800, so I should be able to use the whole image, but I can't because it seems to be always getting the orientation wrong. I've tried rotating it, this doesn't seem to make a difference. The resize widget is always the opposite of what I want it to be. It's almost as if it's detecting the image's aspect ratio and doing the opposite of what it should be doing. I've made sure the image doesn't contain any meta data which could be specifying another orientation. I'm sure there must be something I'm misunderstanding about how this widget works. It's driving me nuts though!

I've attached a screenshot to make it more clear what I mean.

Thanks for any help with this,
Dan.

View attachment 60463