Not sure if this is a droid bug or not.
I am using the HTC Thunderbolt and just updated my Swype to the latest version... Now while trying to send a text within Handcent I type in the name of the person from my contact list within the " To: " field and then type my message but after sending it simply goes back to the main screen and does not send it. The only way I can send a message now is to choose the list of contacts from the " + " tab to the far right of the "To:" field and place a check mark next to the person I wish to send a text to. Before I did this update all I had to do was start typing the persons name and it would show a progressive name list for me to text.
I also made sure I had latest Handcent just to cover my bases.