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I had the same thing occur, but Swype worked after I uninstalled and reinstalled both the installer and the app. Did you disable and then re-enable swype as the default keyboard?
I didn't uninstall the installer last time, so I just uninstalled both and reinstalled, and it still doesn't work. Swype is the default keyboard, and it shows the blue line as I Swype, but no text appears. Touch typing does work.
ONLY FOR REGISTERED BETA USERS. Droid1
This is the new beta as of 12-5-10. Manuver to the link with your phone and install the new installer. Then run installer.
Make sure you un-install the swype and installer apk's currently on your phone first. Then download.
Note: this is a link to the installer only. You must already have a login and password id. http://betainfo.swype.com/t/r/l/sdyijl/hditpyur/y