I just wanted to give some precisions about the external English dictionary, introduced in version 3.6.0 (instead of a built-in dictionary as in the previous versions).
As a reminder now you need to download "English for Smart Keyboard" app to make English suggestions and auto-correction work.
This was done for four reasons:
1) not everyone need the English dictionary, and it took more than half the size of the app
2) you can install it on the SD card (on Android 2.2: Settings > Applications > Manage Applications > Downloaded > English for Smart Keyboard > Move to SD card), which gives more room on the internal storage
3) it makes the main app smaller, so updates can be downloaded faster, you use less network bandwidth, etc.
4) it helps collecting statistics about which languages are used most by SKP users
Of course this may sound less convenient for English-only-speaking people, but please don't be selfish, most Android users in the world don't need an English dictionary at all, and it takes only a few seconds of your time to install it if needed.