first, mind telling me how do u install it? thru app manager or offline using .deb files? i'm using offline install.
wat i did is from setting, go language & region, change device language (scroll to the most bottom, u should see 3 new language chinese (hong kong), chinese (PRC) and chinese (taiwan)) switch to either 1, then restart ur phone
now open a notepad or conversation, hold ctrl + space (not the blue arrow, its spacebar) to activate
if u're on pinyin mode, u wont see any diff until u started typing, if u're on handwriting mode, then a box should appear at ur bottom right screen
If it works, then feel free to change back to english language (well, u'll hav to change back even if it doesnt work lolz)
just noticed new thing...pressing shift + ctrl will switch between input mode...din know that before
some screenshot :
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u can ignore this message if u do not have any other applications opened. if u had ur notepad/conversation (or anything that required typing), u'll hav to restart those particular app(s)

handwriting input : u can choose for it to detect only chinese handwriting, or only english, or symbols, or all together!
oh, in case u're worried that it'll block wat u're typing in the white bar, u dun hav to, u can shift the handwriting box up ^^

pinyin mode
i just installed mscim yesterday...now its working perfectly well, and yes, it still crushes the virtual keyboard on PR1.3
but i dun mind thou, prefer the physical keyboard

yea i figured tat out just now coz i din key in anything.. i tot theres a menu tat shows pinyin enabled or something like tat.. theres few inputs depending on wat u installed.. it sux though and i already removed it.. two major problem if u use this chinese input is no virtual keyboard where u can put symbols and cant copy-paste..
theres other release called emecs or something like tat but its far more complicated to get it running.. i will just skip chinese input since i dun understand chinese word..