I'm targeting SDK 15 and testing directly on my Galaxy Nexus running Android 4.0.2. I also have Auto-Capitalization turned on in my Android Keyboard Settings.
When I fist launch the application and load the following Activity in portrait mode and focus on the EditText, the textCapSentences is honored. If I leave this Activity, change my orientation to landscape, and relaunch the same activity and repeat the same steps -- the virtual keyboard starts out in all lowercase. If I remain in landscape, leave the Activity, and relaunch it, then the textCapSentences is honored and continues to be until I change the orientation again (at which time portrait mode would also not honor the textCapSentences the first time, but will honor it each subsequent time). In short, except for when the application first launches, it seems that an orientation change causes the textCapSentences to not be honored when the Activity has just been created. I'm not overriding onResume() and my onCreate() doesn't do anything fancy, it just sets the content view. Here is my Activity's layout/main.xml (I'm not using a layout-land/):
<?xml version="1.0" encoding="UTF-8"?>
<ScrollView xmlns:android="http://schemas.android.com/apk/res/android"
android:layout_width="match_parent"
android:layout_height="match_parent"
android:fillViewport="true" >
<LinearLayout
android:layout_width="match_parent"
android:layout_height="match_parent"
android:orientation="vertical" >
<EditText
android:id="@+id/note"
android:layout_width="match_parent"
android:layout_height="match_parent"
android:gravity="top"
android:hint="Type note here"
android:inputType="text|textMultiLine|textCapSentences"
android:scrollHorizontally="false" />
</LinearLayout>
</ScrollView>
Any advice would be much appreciated.