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Anonymous
2013-07-24T01:05:59+00:00 For everyone's future reference: There IS a fix for this that doesn't involve sending your Surface back to MS.
Step #1 - Boot your Surface into Windows 8.
Step #2 - Hold the volume rocker in the up position and hold down on the power button until the Surface shuts down. Continue holding down both the volume up and power buttons until the Surface turns back on and show's it's "Surface" splash screen. Continue holding down both bopouttons until the Surface turns off a second time. Release both buttons.
Step #3 - Turn your Surface on once again. If you've done everything right, you should see "Updating Your System" appear on the splash screen along with a percentage counter. Don't touch the Surface until it completes this process and you find yourself at the lock screen.
EDIT: Since this is now marked as the answer - while I saw the "Updating Your System" message the first time I performed this reset, I have not seen it in subsequent repetitions of the procedure. Not sure if something changed, or if perhaps I just had an update I didn't catch queued up before I did the reset. In any case, DO NOT assume that your reset was not successful just because you do not see the "Updating Your System" message.
Step #4 - Login and confirm you have rotation and tilt again!
I spent far too many hours fighting this before a Surface tech support agent finally suggested the procedure above, likely prompted by someone higher up the chain monitoring the call (he told me that a "colleague" suggested the procedure). He explained the effect of this procedure to me as telling the Surface to "forget everything it knows about the hardware and start from scratch" - my guess is that it did some kind of firmware reset and overwrote whatever nastiness Android-IA originally caused. He also said this procedure is a good thing to try if you find that the cover or windows key stops working.
Hope this helps someone avoid the hours of frustration I experienced!
Have you tried restoring your system from a prevous recover point before the issue started happening?