Jim,
The Purpose is set to not be right reading, and rotated 90 in the LL. When which means that the text rotates with the instrument. So the instrument is rotated 90, the Purpose text is rotated 90. Where as the Color is set to Right Reading, so even though the instrument is rotated at 90, the text maintains its original rotation.
If you are trying to get the information to always appear upstage or downstage of the instrument, that's different.
The spacing problem is a know issue with the instrument key. The Key is a simple group that you can edit to rearrange the information.