Ugh. I'm having this issue now, too. My Droid 4's microphone issue caused me to do a factory reset as a last resort before returning the phone. Before I reset, my keyboard settings were exactly how I wanted them --- it didn't autocorrect anything besides i'm/i'd/i. Now after resetting, it seems like it's impossible for the phone to do that? What happened?? Also, before I reset, words weren't underlined as I was writing them, and autocorrecting the i's didn't highlight them in green... what on earth happened?