Swype has some funny ways... The same thing happened to me but I did as suggested by others. Just uninstall and download a new copy. My phone came with Swype loaded as a system app as well; you will have to wipe, log in and reload to reach Nirvana. This whole process is my only issue with Swype. You always have a clean install instead of an update so you have to "teach" it all over again.