Yah, Steve, I tried all possible settings and I never been fan of predictive thing -
I took it to TMO store and let couple of people try it and they agreed that its a keyb problem and should be replaced. Yes I do have the spell check enabled and that is driving me nutts when every other letter has a typo. I knew from the day one that there was something wrong with this device because its BB-key. Escape/Back key were making noise and even after I pressed and released them but I had to give myself a chance to believe it.