I'm sad to report it does not rotate. Unless you rotate it enough to break the plastic peg.
But I used a bit of square brass rod and tubing and fixed it up to work horizontal and vertical.
More details at http://www.flylords.net/2013/08/rotating-b-wing-for-x-wing-miniatures.html
Now... any ideas on the cockpit?
My heart goes out to you. 
Glad to have you as part of the community, WW.
Hey now, I was being serious. I don't emote when I'm sarcastic.
Edited by WonderWAAAGHCut the cockpit off flush, then use a square pin exactly the same way you did with the back so it can be put back on with 90 degree rotations.
hehe, rotating cockpit in space... B wing, you so silly, thats why you the best.
I like it! Particularly as the square brass rod fits nicely between the four engines (?).
That is a pretty slick mod there Genius.
Hardcore: magnetise both the base holder and the cockpit, allowing you to fly at whatever jaunty angle takes your pick.
****, now I'm going to have to do this with my B-Wing when I get it....
Cut the cockpit off flush, then use a square pin exactly the same way you did with the back so it can be put back on with 90 degree rotations.
Better yet a small magnet so you can go back and forth.
It is possible to bend the position without breaking the peg - just be careful with it, and don't overdo it. I've got mine at about 30 degrees and 15 degrees, and the pegs are fine.
Doesn't CorSec Engineering have pegs that swivel? If you could mount a fighter on that then...
Hey now, I was being serious. I don't emote when I'm sarcastic.
Me too. If I can't get sympathy about broken toys here...
How far does it stickout when sideways? It looks it would interfere with other ships close by.
i LOVE the way it looks horizontal!
i can just see it now, 4 B-wings modded to go ho, then knocking over a squadron of Tie/LNs 
Hardcore: magnetise both the base holder and the cockpit, allowing you to fly at whatever jaunty angle takes your pick.
****, now I'm going to have to do this with my B-Wing when I get it....
That's not the hardcore way, it's the only way if you ask me.
Because as you can see on the OP's pictures, you would have a lot of problems with standing a ship next to the B-Wing if you glued it together in a horizontal pose...
How far does it stickout when sideways? It looks it would interfere with other ships close by.
A lot. But, the good news is that you can rotate it so it sticks out the other side pretty easily. It would have more trouble with ships ahead and to the side, since the B is pretty far forward to begin with. Since the peg on the base is in the same place and the stand attaches to the back of the B, the whole model is pretty front-heavy. I'll have to put it with some other ships to see how it interacts when sideways.
I do not have a B-Wing yet, but my 4 year old nephew twitsted my Tie-Advance off it's peg. I am TOTALLY going to use this method to simply fix my Tie. Great solution to a problem.
I'm getting to the stage where I'm very tempted to get rid of all the pegs etc and replace everything with brass rod and magnets, I haven't had them long and they are already showing signs of cracking
Now... any ideas on the cockpit?
No ideas on the cockpit, but if you could find a 6 or 8-sided brass rod then you would have even more angles to plug the ship into.
The cockpit you could easily cut off and reposition. But it would have to remain in New positron then plus you have to touch up where it was cut but that would be facing down anyway. I think the best thing to do is leave the cockpit and mint the Bwing with a rare Earth magnet.
Now you did it… you put my hobby gears to work… I think I’ll magnetized everything when I get my B-wings (peg and cockpit), it’s just matter of being very careful and steady hand to make the cuts (that’s the difficult part) then I’d just drill small holes to add the magnets
I think magnets are a good idea for the cockpit, but I don't think it will work well on the back mount. Or if it does, the magnet will have to be so big as to make it unsightly. It is just too unevenly weighted and won't stay in the position you want.
If I can get another, I might try a very fine pin and get rid of the right angle bend in the flight stand. Then I can make a very small hole in the bottom and in the main wing to center it better over the base when sideways.
I like the cockpit the way it is, but if I wanted to go to the trouble of customizing the cockpit I think I'd get a small saw and cut off the cockpit, then use a pin-vice and rods to mount the cockpit on a swivel mount. The peg should be snug enough in the mount for the cockpit to hold but still rotate.
Now how about making the wings fold? Any thoughts there? 