Windows Live Photo Gallery allows the attachment of hierarchical tags. I've uploaded a sample file to skydrive, with lots of metadata. Inspecting the file with an EXIF/IPTC/XMP tool I can see that the WLPG tags are saved as IPTC Keyword Tags.
Flat keywords, in this example "Christmas Slideshow" show up in Media Center as expected.
Hierarchical tags, in this example "Events/Christmas" do not.
I would have expected to happen is at a minimum MC would treat "Events/Christmas" as a unique tag. The better way to parse these tags would be to select just the lowest-level tag (in this case "Christmas") for inclusion in the tags list in the MC photo browser.
Sample: http://cid-3323acf37bd7b107.skydrive.live.com/self.aspx/MC7%20Troubleshooting/ChristmasDay%20001.jpg
Is this a known issue? Any update expected to resolve the incompatibility with the current release?
Thanks
Pete