See Knowledge base item KB312838 - which reports:

After you install the fix, you must turn it on by setting the following
registry key to the value QFE_FlipPictures:
HKEY_CURRENT_USER\Software\Microsoft\Office\10.0\Common\Draw

To add the required registry key, follow these steps:
 1.. Click Start, and then click Run.
 2.. In the Open box, type regedit, and then click OK.
 3.. In the left pane of Registry Editor, locate and select the following
key (folder):
 HKEY_CURRENT_USER\Software\Microsoft\Office\10.0\Common

In Microsoft Office PowerPoint 2003, the registry key is:
 HKEY_CURRENT_USER\Software\Microsoft\Office\11.0\Common

4.. On the Edit menu, point to New, and then click Key.
5.. Type Draw, and then press ENTER.
6.. While the new Draw key is selected, point to New on the Edit menu, and
then click DWORD Value.
7.. Type QFE_FlipPictures.
8.. In the right-pane of Registry Editor, double-click the
QFE_FlipPictures entry.
9.. In the Value data box, type the appropriate value from the following
table, based on how you want to handle the flipped images.
Value = 0
This is the default (off) setting. No images will be corrected when you
open a document in Office XP. This is the same behavior that you experience
if you do not have the fix installed.
Value = 1
If you open an older file that was never edited in Office XP, all
incorrectly flipped images that do not contain the new OK property will be
restored. When you save the document, the new OK property is set.

Note This is the preferred setting for this fix.
Value = 2
Whether or not you open an older file that was never edited in Office XP,
this setting restores all incorrectly flipped images that do not have the
new OK property.

In some cases this setting may create problems for newer documents that
were initially created in Office XP (before this fix was applied) and have
images that the author intended to be flipped. When you save the document,
the new OK property is set for all images in the document.

Note This setting is for advanced users only. If you have already opened,
edited, and saved affected documents, this setting may be helpful for
correcting images that are not corrected when the QFE_FlipPictures setting
is 1.
Value = 3
This setting resets all incorrectly flipped images whether or not they
have the new OK property. This affects all documents no matter which version
they were created in, including documents that were created after this fix
was installed. When you save the document, the new OK property is set for
all images in the document, whether it was already set or not.

Note This setting is for advanced users only. Do not use this setting
unless you have several documents that were not corrected when you set
QFE_FlipPictures to 1 or 2.
Value = 4
If you do not have any affected documents and do not expect to receive any
affected documents from any other users, use this setting to verify that all
flipped images from earlier versions of Office are ignored. The new OK
property will be set.

Note This setting is for advanced users only and is really is not intended
to be used. Please use this setting with caution.
10.. Click OK.
11.. On the File menu, click Exit to quit Registry Editor