Actually, I think I figured it out.
1)
Swype | Text Input for Screens - Go here and sign up for the Swype 3.0 Beta
a) ensure the email address you use it retrievable on your phone (worked flawlessly with an address i have linked in the "email" app)
2) uninstall your existing installation of Swype via the Manage Applications menu in settings (Settings>Manage Applications>Swype>Uninstall)
3) go to your email on your phone and retrieve the message in your inbox
4) open the link and download the app
5) install the first app that is named Swype-Installer.apk
6) after installation is finished you must OPEN it, clicking done will not finish the installation
7) run through the installer and you're finished
8) ensure you have re-enabled swype as your primary input method in your "language and keyboard" menu (Settings>Language & Keyboard, check "swype" and select it in the menu "Select input method"
If you want to disable the tips that pop up, that's in the same "Language & keyboard" menu but instead, in the "Swype settings" menu.
I hope this helps someone else like it did me. This will update your Swype from 2.6.48.12353 to 3.6.84.26668.t100.26699 (or at least for me it did)
P.S: remember, this version is a BETA version but it's an OPEN beta and so far everything works fine for me and seems to be a fairly big improvement form the one that came with my phone