The 4.2 keyboard is cool and all, but what I highly recommend is swype Beta or the SwiftKey keyboard. Both are really awesome. Actually I've got all 3 of them installed, since I haven't decided which is better yet. But I'm leaning towards swift key or swype Beta! What I like about swype Beta is that it has the personal dictionary and multiple options for auto complete, but it's a bit glitchy at times. If you are looking for a crisp swipe like keyboard swift key is super sleek with a few more options than the 4.2.
EDIT: actually,I take that back about Swype beta. It looks really cool, but waaaay to buggy. I typed a paragraph and it deleted the entire thing as I reached the end of it. I tried my other keyboards and had no prob, so it had to be the beta. It looks really cool, but not worth the frustration. Regular Swype is better. But swift key still takes the cake.
EDIT: actually,I take that back about Swype beta. It looks really cool, but waaaay to buggy. I typed a paragraph and it deleted the entire thing as I reached the end of it. I tried my other keyboards and had no prob, so it had to be the beta. It looks really cool, but not worth the frustration. Regular Swype is better. But swift key still takes the cake.