How to turn off word suggestions?

Settings - Language & Input - Android keyboard (AOSP) settings (click the gear) - Show correction suggestions. That will give you three options. Always show - Show on portrait mode - Always Hide.

This is in JB. Hope it helps.
 
Are you using the Swype keyboard? It has separate settings under Settings/Language & input.

Edit: Just looked at your screenshot, and yeah, you're using Swype. Make sure you go under the Swype settings, not the Android keyboard settings.

Sent from my DROID RAZR using Android Central Forums
 

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