Puzzle Solution: Red Buttons

No, it doesn't have to do with the position on the board, but I heard a lot of interesting theories, many dealing with how the white bishop got to its improbable position, and the fact that black has merely one pawn as far as his/her third rank. Finally, what is that strange white piece that is being occluded by the white bishop? It could only be another pawn, unless it is a third promoted knight, which seems pretty unlikely.

Some people suggested that the board was actually correctly placed, but the image was flipped for some reason by the newspaper or website. Indeed, this was my initial thought too - and it appears like Susan Polgar, on her blog, actually went ahead and flipped the image so that the board appears properly set up.

Of the private emails that I received with possible solutions, two suggested what I think is the key - the woman's button on her jacket. It appears like the button is on the left and the buttonhole on the right, which is typical for a woman's jacket (men's jackets have the button and buttonhole reversed). So, it does not appear as if the image has been flipped, and indeed, the board was set up incorrectly.

Thanks to everyone who responded!