peterlesliebabani wrote:
i called apple and the guy i spoke to said it is probably a VIRUS and it will be corrected on the next update!
Either you didn't actually call Apple, and got some tech support scammer instead (calling the first number that pops up on a Google search for "Apple support" can give you some bad numbers), or the Apple tech you spoke to didn't know what he's talking about. It's not a virus.
As for the problem, if you have enabled auto-capitalization and the problem continues, first try resetting your device. Press and hold both the home button and the sleep/wake button for about 10 seconds, until the screen turns off. Ignore the slider that will appear. Release the buttons, then press and hold the sleep/wake button until the Apple logo appears. This is the equivalent of a reboot, and should not affect your data or apps.
If that doesn't help, try restoring your device from backups, and if that doesn't help, restore it to factory settings (ie, do not restore a backup). See:
http://support.apple.com/kb/ht1414
If none of that helps, the issue is caused by some kind of hardware problem, and the device will need to be repaired or (more likely) replaced.