Custom Preview Upside-Down Fixed in Windows 7 RC
There was a minor bug in Windows 7 Beta which caused bitmaps passed to DwmSetIconicLivePreviewBitmap and DwmSetIconicThumbnail to be rendered upside-down in the thumbnail and live preview. (To work around this bug, the Windows 7 Taskbar Sample Library incorporates a special flag that allows mirroring the bitmap before passing it through to DWM.)
This has been fixed in Windows 7 RC, so there’s no need to render top-down bitmaps anymore. Whatever bitmap you provide will be rendered exactly as you see it. (There are still the obvious dimension constraints, etc.)