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Did you try changing your touch input setting turning swype off and then on again. I found on my evo that if I restarted the phone I had to turn swype back on.
I have had a problem similar to that on my d1, but only if I start at a bad point. Sometimes Swype is a little less sensitive than it should be.
If you think it might help them with their next version you can go post on their forums, tell them about it, and see what happens. They might even have a fix. If you do and they do, please report back here so others can see.
Furbearingmammal I think I did receive an update. But thus is the only device I ever used it on. As for uninstalling an uninstalling same outcome.....works for a day then stops
If you received an update than the phone "looks" different when the license is checked. You need to generate a new license and hopefully it'll fix things.
I did it by disabling the install, re-enabling the install, than hitting the generate license key from within the installer.
If all else fails try uninstalling Swype from the app manager and reinstalling from the installer, but make sure that third button appears and you hit it.
:edit: I've been working two Swype threads tonight and I thought it was the other one that had mentioned the Swype beta forums. I'm an idiot.