Same on my Droid 3.
I do see apps in Android Market which claim to remedy that issue for certain devices and versions of Android OS (some are vague in their descriptions about which device they're suited for).
I don't see a need for portrait video recording, but some users do.. search around Market, you may find a third party app that suits your Photon (unless there's a setting in Photon.. I doubt it, but I don't see one in my D3).