I just upgraded to WP 2.1.2 from 2.0.5 and am having the same problem as oseary (above) and Auke (http://wordpress.org/support/topic/101780?replies=5) concerning the new spellchecker not functioning. I get the message "No misspellings found." no matter what I type. I am using IE7 and think I am starting to understand a little about this after reading several other posts several times on the same issue, but I am still confused a little.
It looks like my ISP does not provide support for pspell, and I am assuming they do not for aspell (they did not respond to that question). So it looks like 2 of the 3 checks Otto42 mentions above will not happen. I have no idea why the Google Web Service does not check, but it looks like none of the checks are working.
After playing with IE7 and Firefox 2.0, I noticed that automatic spellchecking works in Firefox for me, but if I use the WP spellchecker button I get the same message as I do in IE7, "No misspellings found." This leads me to believe that the WP spellchecker function just will not work for me at all no matter what browser I use. The Firefox solution looks like it is just a browser solution, it looks like it does not fix the WP problem. Does that sound right? I know someone is just going to tell me to use Firefox, but I do not like it just like many people do not like IE or Netscape.
Otto42, you mention a fix in the next WP release for all servers. I assume that will fix my problem of none of the checks running. That would be great. The spellchecking feature is the main reason I upgraded. Oh well.
Does this sound right or do I have it all wrong. Thanks for any help and assistance you may be able to provide.