WMS and Bing/Yahoo Basemap Overlays

Here is an interesting issue I found today with WMS overlay. When WMS layers are created in either Mapserver or Geoserver then added as overlays to Yahoo or Bing their alignment is wrong.

Let me step back. As mentioned in earlier posts. One can create a WMS layer in geoserver and through the excellent config interface add this as a layer to Google earth.



All align perfectly. Now adding the same WMS to Modest Maps and overlaying it on Yahoo shows the WMS misaligned:



Turning to Openlayers, I find the same problem:



In each of the latter cases the WMS layer also looks stretched. I'll find the fix and post it.