I had this problem on a freshly installed machine once or two times, while no proper codecs were installed (read – ffdshow). I think that if DirectShow uses a VFW codec there is a great chance to video be flipped.
ffdshow is a Windows component that's a decoder of most popular audio and video formats and also a processor. For decoding it uses great Open Source libraries. To let it work on your video or audio, select it to handle uncompressed data and configure what processing you want. Support for any compressed format (decoding and processing) or uncompressed data (only processing) can be switched on and off anytime.
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