There is an app on Cydia and Installer that will remove the the auto-correction. There is also an addon for Boss Prefs that will do this. I havent personally tried it yet, I quite like the corrections, as I make a bunch of mistakes.
I would think the Boss Prefs addon would be more stable and more easily reversible if you decided to do so. Here is a screenshot of the addon on Cydia.
This is for 2.x firmware



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