The Photo Album app does indeed rotate in the simulator, but only when you are viewing photos. The list of photo albums does not re-orient when rotated. This is how it works on actual hardware as well. Are you seeing something different?

As an aside,in the 3.0 version of the simulator there is now an option for sending a shake gesture but in the one app I have that responds to shakes it didn't work no matter how low I set the threshold.

Edit:looking at the shake gesture it seems that the method accelerometer:accelerometer didAccelerate does not get called (which is the method my app is using to detect shakes) when you send a shake gesture to the simulator so I'm not sure what the shake gesture actually does in 3.0.