There have been several threads about this since 2.2 started coming out. I never had a problem on my rooted droid with swype until the OTA update notification came to my phone. I used Peter Alfonso's tool to block it since I already had 2.2 and Swype stopped working. I had uninstall swype, then delete the isntaller and any previous backed up versions so there was no record of swype on my phone at all. Then I had the invite for swype beta re-emailed to, downloaded the .apk file, installed it, and now it finally works again.