How to Set Keyboard Options on Your iPod Touch
To set keyboard options on your iPod Touch, choose Settings→General→Keyboard from the Home screen. The Keyboard settings screen appears, with options for Auto-Capitalization, Auto-Correction, Check Spelling, Enable Caps Lock, and Shortcut (which, by default, is set for inserting a period and a space by double-tapping the spacebar).
Auto-Capitalization automatically capitalizes the next word after you type a period, question mark, or exclamation point. It also automatically capitalizes after you tap the Return key. The assumption is that you’re starting a new sentence or new line of text that should begin with a capital letter. Tap the On switch to turn this feature off if you want; tap Off to turn it back on.
Tap the On switch to turn off Auto-Correction if you don’t want the keyboard to suggest typing corrections. Tap Off to turn it back on.
Enable Caps Lock is normally turned on, so that you can then double-tap the Shift key to turn on caps lock (uppercase letters). The Shift key turns blue, and all letters you type are uppercase. Tap the Shift key again to turn caps lock off. To turn off Enable Caps Lock, tap the On switch to turn it off.
The Shortcut option is set for inserting a period by double-tapping the spacebar, which inserts both a period and a following space. The assumption is that you want to finish a sentence and start the next one. Tap the On switch to turn this feature off if you want; tap Off to turn it back on.