<<please try again in this exact order:
1) Uninstall Swype and SwypeInstaller
2) Uninstall any 3rd party task manager you have (you can reinstall later)
3) Delete all copies of Swype-Installer.apk from the "download" folder on your SDcard
4) Reinstall SwypeInstaller ONLY
5) Reboot your device
6) Run SwypeInstaller first thing when your device is ready
7) Complete installation
If that doesn't work, send me an email (brian.resnik[at]swypeinc[dot]com) and I'll walk you through some more advanced troubleshooting.>>
You can find the complete thread here:
Swype does not work on final Nexus One Froyo build (FRF85B)
Sounds like that fix has worked for a lot of folks.
Please let us know if this works or not-while I'm not having a problem, I'd like to try to figure out what is happening.