OK, I researched the solution and found it. I am using the Samsung Beta Swype keyboard now and it works great along with keys for handwriting and "speech to text". This will work for only rooted phones because you need to access files from root. I moved the 3 original files to my SD card so if I want to uninstall Swype Beta, I can replace all the original files.
1. Go to Settings/Language and input and set Samsung as your default keyboard (if it is not already)
2. Open your favorite root file manager (I use Root Browser by Jrummy (thank you)) Make sure your file system is set to R/W.
3. Delete or move \system\app\swype.apk (Moving these files to a safe location is best solution so that you can move them back at a later time)
4. Delete or move \data\dalvik-cache\system@app@Swype.apk@classes.dex (might be .odex depending on your ROM)
5. Delete or move \system\lib\libSwypeCore.so
6. Reboot
7. Download and Run the latest Swype Beta installer
8. Go to Settings/Language and input and set Swype Beta as your default keyboard (Voila)
If you get FC's after installing Swype BETA then remove Swype and the Swype Installer under Manage Apps, re-boot and install the BETA again. Might be some stuff left over from the old version that can cause this problem. Mine worked fine though with no FCs.
Source: forum.xda-developers.com/showthread.php?t=1424457
Enjoy.