As I understand it, geoserver reprojects vector layers on the fly, to the requested projection. OpenLayers sets that projection to be the projection of the designated base layer. However, I do not think that geoserver can reproject raster data on the fly and I would question the wisdom of doing so even if it could. Reprojecting raster data is an operation fraught with difficulties and it is almost always better to return to base data from which the raster was based and create a new raster. This does of course create issues for creating transparent overlays on google maps. I do this by creating 900913 versions of the raster data and putting those on geoserver instead. If you change baselayer from say google to a different one with a different projection, (as opposed to trying to display two at the same time), then projection of the OL map should change to the new baselayer projection.
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