I've been trying to do this for weeks. A few days of drunken swyping and you add a bunch of wrongly spelt words. NOw when i type and i see a wrong word in the swype suggestion box, i just choose that word and delete it then, then continue on wiht my typing. Not the most effecient method though.
I just used Root Explorer to search for all swype related files and think i found the databases, but they aren't in a format that you can edit them on the phone. Will have to try from home when i get the chance.
my best guesses as to which has it would be this one below
or if not that then one of these two, but i am pretty sure it is that one