No, that's what I was talking about too—it needs the context of the (part of speech of) the next word to figure out in the cases I mentioned whether I actually intended the (correctly-spelled) word "wed" or the (correctly-spelled) word "we'd". It doesn't change it until after you hit space to commit the word that comes after the "wed" input.
Ah, ok. I'm pretty sure I've had it happen with more than just contractions though, like with common phrases. The real problem is that it's really hard to undo the correction. I need to start keeping better track of it so I can file a bug report... it makes it really difficult to type certain combinations of words.
Unfortunately I can't remember any examples at the moment, it's just something that happens to me every so often. They're really irritating though, because they aren't well expressed in the current autocorrect UI (which works on the current word) and it doesn't seem to get the hint when you go back and correct it, so it keeps applying it over and over.