As announced, Apple iOS 4.0 was released yesterday. The primary issue I had with Apple iPod Touch 3G was that the kannada characters were split (Remember good old Windows 2000). I had even submitted a bug report about this to Apple. I was all waiting to get the OS 4.0 updated mainly to check the kannada character rendering.
I just did the update and visited sampada. I was so happy to find fix for Kannada character rendering. I am so happy.
A humble thank you to all people behind this fix. Check the screeshot.
Also, there is a Transliterate app on Apple Store. Using which we can even type in ಕನ್ನಡ. Finally, for the worth of it, I have what I wanted.