Google Nexus One User Manual page 257

Gallery
To rotate a picture
Touch a picture to view the controls and touch Menu.
1
Touch More.
2
A menu opens with tools for working with the picture.
Touch Rotate left or Rotate right.
3
The picture is saved with the new orientation.
To use a picture as a contact icon or as Home screen wallpaper
Touch the picture to view the controls and touch Menu.
1
Touch More.
2
Touch Set as.
3
If you touch Contact icon, you're prompted to select the contact to associate
with the picture and then crop the picture.
If you touch Wallpaper, you're prompted to crop the picture.
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Nexus One User's Guide