This is an astronomical telescope-- all astronomical telescopes show upside down and or reversed images. It's completely normal.
For terrestrial viewing you must buy an "erecting prism diagonal" similar to these:
http://www.astronomics.com/main/Image_Erecting_Prisms.asp/catalog_name/Astronomics/category_name/EDNECFUVSRWS8KLNTU5E38XSE1
www.telescopeman.org
www.telescopeman.us
www.telescopeman.info:
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