Actually, I found a way around the problem. It's a bit far fetched, but it works. Please note that my phone is a Swedish device called "Samsung SGH-i600" with a Swedish keyboard (the keys surrounding space are labeled ö, ä and å).
When in text edit mode (like when writing an SMS), I press Fn and then the "123" key. I can then make a selection about what text entry mode I prefer, like T9, ABC, 123, Symbols or Language (selection). If I choose T9, capitals are chosen automatically at the start of sentences. Neat!
