Many Swype customers are emailing and searching the web for a solution fix after manually updating their software to FroYo, looks like there are a few problems and we will give you some details.
The problems with Swype after manually updating to Froyo has been noticed and it seems this is normal, so much so that Swype has noted that there is a problem and have a fix for you, which entails an uninstall and reinstall process.
Thanks to Droid-Life they have the details, you can see the full official instructions via Swype. Please follow the instructions given below:
To uninstall the Swype Installer and Swype:
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1. On the phone, go to Settings → Applications → Manage Applications → SwypeInstaller → Uninstall
2. When it asks if you want to uninstall SwypeInstaller, press OK
3. SwypeInstaller should uninstall
4. Then, in the same location choose Swype → Uninstall
5. When it asks if you want to uninstall Swype, press OK
6. Swype should uninstall
Once again please comment below if you have had a problem, if you are still having issues and of course if the above advice has helped you.