I have the solution

Thanks once again to the knowledgable folks at xda-developers I have fixed the problem. It required a registry change. I have pasted the details below:

Touch Diamond Text Word Completion Registry Change

IMPORTANT: previously be sure that HKLM\Software\Tegic\eT9\XT9SupportMSSip has a value of 0.

Simply change these two registry keys under:
HKLM\system\currentcontrolset\control\layouts\e 0010409

Ime File : \windows\xt9ime.dll change to Ime File :\windows\compime.dll

Thanks for helping me with this.
Cheers, Dean