Many of you may be getting the error: "The Swype package you installed is configured for another device..", or something like that.
The easy fix is to get the D2 package, provided by stetsonaw:
"make a backup, no need to mount /system, no wipe, blah blah, you know what to do!
Download StockSwypeD2.zip "
Another way to fix this involves getting the new swype beta from the Swype website, or you can restore from an older installer if you have one.
First step is to remove the old swype. Open Liberty Toolbox, head on over to App Management --> Remove Apps. Click the Menu key and then Show All Apps. Find Swype there, select it, menu key and remove selected.
Now, sign up here: https://beta.swype.com/android/create/
Make sure you use a real email. They will send you an activation link.
After your account is activated, navigate here on your android: https://beta.swype.com/android/get/
After that, install the .apk on your phone, and go through the download following instructions. All should work just fine.
I now have the latest version of swype working on my Droid 2. Only small downside is that it doesn't match the old theme :P