I'm pretty versed in Swype so learning curve is not an issue. Day 3 with Droid X and I've found the problem. Swype tracing SKIPS third row of keys altogether (ZXCVBNM).
I was having problems with apostrophes and in testing the trace, found that it hits the third line and stops, every time. Manual entry is still there.
Did a pretty extensive search online for similar issues and found nothing...