Just pushed the new version to Android market - Thanks blazingwolf!
Added the following to the OP:
EDIT 7/04/12 - V1.2.3 BETA - Multi-touch + Much More Fotolio Android Market
V1.2.3 - Added pinch zoom (long press image to activate)
V1.2.3 - App now rotates from Landscape to Portrait
V1.2.3 - Added preferences menu options for personalizing UI
V1.2.3 - As requested, options to select SlideShow speed
V1.2.3 - Updated UI graphics and several bug fixes