I was able to find International keyboard and input dictionary which I was quite happy about.

Now, I'm in need to find a way to change the encoding of the e-mail and SMS. It seems every time I type in messages, it gets garbled on the other party. I'm assuming it's because it's UTF-8. If that's the case, I'll do iphone equivalent of what I had to do on my OS X as follows.

Mac OS X 10.4: Japanese message doesn't appear correctly in web mail or on cell phone when sent from Mail

iPhone doesn't seem to find "defaults" ... if anyone have any idea. That would greatly appreciated.