Auto correction is a system for correcting common typing errors, converting abbreviations to their full spelling and adjusting capitalization. As you could guess from its name, this all occurs automatically, while you are editing your document.
To adjust the options for auto correction, select Tools->Autocorrection... from the Menu bar
A dialog window appears to help you set your options.

When selected, this option will replace the standard keyboard quotes, with typographical quotation marks. If you want to change the quotation character, click on one of the buttons.
When selected, KWord will automatically capitalize the first letter after a period.
When selected, KWord will automatically convert a double capital letter (a common typographical error), into a single capital letter.
To switch to the Advanced Autocorrection, click on the tab labled Advanced Autocorrection.

This allows you to automatically have KWord replace one string of text with another. This can be useful for special symbols, commonly used abbriviations that you want spelled out, or abbreviations.
KWord comes standard with 4 autocorrection strings. Each string listed in the column labeled Find will be automatically replaced with the text in Replace.
To add an autocorrection string, simply click on the Add button. This will bring up a dialog box.

Enter the text you want KWord to search for in the text box labeled Find. Alternativly, you can click the button to the right of the Find text box, and you can select a special character from the table provided.
Now enter the text you want to replace it with in the text box labeled Replace. The button to the right of the Replace. text box works the same as the button next to the Find text box.
When these are entered, click OK. Your text strings are now added to the table.
If you select Cancel, your strings will not be added.
Begin by clicking once on the string you want to edit. It will be highlighted. Now click on the Edit button. The dialog will appear with the familiar fields for you to edit. When you are done, simply select OK to keep your changes, or Cancel to forget your changes.