Swype is good stuff, but I had to do some tutorials, here's what I've learned, in case anyone needs a crash course.
1. Spaces are put in automatically, assuming you typed a word that was in the dictionary.
2. If you are not putting in a word that is in the dictionary, Swype will not find it. However, if you type it in, Swype will add it to it's list of swype-able words and you can Swype it next time. Commonly used words like Can't will be put in if you swype in "cant", There were some other nuances with punctuation but I don't remember them.
3. If you need to capitalize a letter, after touching the first letter of the word, instead of dragging your finger to the next letter, drag your finger above the keyboard until you see the keyboard switch to all caps and then drag your finger back down to the next letter of the word. It took a few tries in the tutorial but the key is to hold your finger briefly above the keyboard until you see the keyboard letters turn to all caps.
4. If you need arrows, press and drag your finger from the swype key, (the one with the little curved line on it) to the SYM key and the keyboard will switch to a handy set of arrows and selection tools. When you are done editing, hit ABC and you can go back to the keyboard.
5. As mentioned in this thread, double letters are achieved by a circular or scrub motion on the letter you want 2 of.
These are the main things I've picked up recently, mostly from digging around various sources. As with T9, if you can't spell very well then you will likely have problems. (oddly enough, the same guy invented both T9 and Swype!, see
http://www.cnn.com/2011/TECH/innovation/01/05/swype.kushler/index.html)
Also, I didn't like the feel of my screen, so putting on a screen protector gave it a faster surface to Swype on as well as the added benefit of the screen protector.