Scratch

Not totally sure, but I think there is a sprite with a costume of each letter. When that letter is pressed on the keyboard, it changes to the equivalent costume and stamps itself.

Example:
[blocks]
<when[ A ]key pressed>
<broadcast[ A ]>

<when I receive[ A ]>
<switch to costume[ A ]>
<stamp>
[/blocks]

When you get your downloading problem fixed, download one and take a look!!

I tried that. Close, but it puts 2 letters down if you don't tap it gently and it changes the previous word to the same as the next word typed

Well you need a curser. When a letter is not being stamped, the costume changes to the curser.

Again, download a typing project when you can.

Here is the link to Mick's-

http://scratch.mit.edu/projects/Mick/1069

Told ya! 

If the letters are stamped then [blocks]<clear>[/blocks] will do it.
If they are done with [blocks]<say[ foo ]>[/blocks] then an empty say block will clear.

What do you mean say Foo? I mean I know the block and such, but why does that help?

Possibly make a clear button and then

[blocks]<when[Clear button]clicked>[/blocks]
[blocks]<broadcast[clear all][/blocks]

And then tell it to:

[blocks]<when I receive[clear all][/blocks]
<switch to costume[no letter]

But I don't know, I havn't tried it. That's my suggestion, you can try it but it won't work. (I think)

Ooh.... that's easy.... i am amazed I didn't see that. Thanks again!

how do you git pickters in a mesige like this

whats a url im new to this so ..ya