I have a Galaxy S2 running ICS 4.0.3
I too have this problem, and judging by the number of views this thread has had (at the moment over 120!!), so do many others!!
As said above, when I touch the desired word, it lights up, but doesn't get selected, I then have to touch it 2,3 even 4 times before it does!!
I found this only happenning since I flashed from 2.3.6, so maybe is an ICS error?
Please fix, because this is the best keyboard bar none!!!!