To Swype a word, start with your finger on the first letter of the word and trace a path from letter to letter, lifting your finger off of the screen after the last letter of the word. The screenshot to the right shows the trace path for the word "Swype".
Swype automatically inserts a space between words when you Swype the next word in your sentence - don't tap the Space bar, just keep Swyping!
When there are multiple suggestions for the word you Swype'd, Swype will display a Word Choice List (WCL). To accept the default word in the WCL, just keep Swyping. Otherwise, scroll through the list by dragging your finger on the WCL, and then tap the word you want to enter.
If Swype does not output the word you wanted, tap on the word and select an alternate from the WCL. To quickly replace a word, simply single-tap or double-tap on the word and Swype a replacement word.
You can remove words that came with Swype's default dictionary. To remove a default dictionary word, Swype the word you wish to remove, then press-hold on the word in the WCL. After you confirm to remove the word when the popup prompt appears, the word won't get in your way again!
Change your mind? Just tap the word letter by letter and it will re-activate in the default dictionary - now you can Swype the word again!
Press and hold the Swype key to access Swype Settings. You can also highlight the last word you entered for editing/deletion by tapping on the Swype key one time.