Technically it's the second letter. When the input is hidden, what NGUI does is fills the character string with "|" -- a single character. When you type anything, it gets added, such as "|a". When you delete a character, it gets removed, ie: "". That's how NGUI detects input. It was the only way to make it work properly together with the ability to move the cursor, select, edit, cut, etc via NGUI.
My guess is that iOS believes that the letter you type is indeed the first letter of a sentence, thus force-capitalizing it. Is there any way to turn this off? You can turn off auto-correct on the input. Does it affect it?