ah ha! finally after searching google for 2 days some one with the same problem,
my XT9 also does not work with the Internet since the 2.2 Froyo update
websites like forums, facebook and even google
edit:
forgot to add, it works fine with texting but when on the internet and typing, in what used to be the word prediction bar above the keyboard it some times has buttons for "go" "next" "prev" etc instead of the predicted word, this is really bugging me cos i am crap at spelling and XT9/T9 is a major part of any phone for me do not like swype i think it's horrid and inaccurate but that is just my personal opinion. its the same with either keyboard qwerty or 4x3.
Samsung Galaxy S - 8gb - Vodafone