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Yes the new multi touch keyboard brought that problem on.. it was even there in the leaks
To fix it all you need to do it go settings --> applications--> manage applications--> go to the all tab and scroll to multi touch keyboard
open that and tap clear data.
you will have to reset any setting you had changed on the keyboard but it should be functioning correctly after that
user dictionary will not be cleared so don't worry about that
That helped out alot!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! I was at my wits end trying to figure that out. I dont know too mch about this "ginger bread update" but i did it several weeks ago...and i dont mind it...but dont really understand the true potential of it i guess