Kannada on Ubuntu Breezy Badger - Update
There had been few discussions about the SCIM Issue and the rendering issues in Breezy with Kannada.
Here's another update apart from what has been discussed in the above links. The package "free-fonts" on Breezy causes some weirdo problems with Kannada rendering. The characters get garbled on gedit and almost all GNOME based applications.
Make sure you have uninstalled this particular package to get rid of that problem.
Hope this helps Ubuntu breezy users.

try from commandline
You can try launching SCIM from the commandline.
$scim &
Also, if Mallige font is installed, the rendering gets messed up.
hi
hi, i'am new here. I received my password after big time. Everything fine with your server?
should be. No technical
should be. No technical problem as such. I'll look into it, though.

Kannada on Ubuntu Breezy Badger - Update
The exact name of the package to be removed is
ttf-freefont.
After removing this package everything works perfect. However there is some problame with scim. On installing some scim packages, I am not able to launch scim-setup.