"Swype" is the way to go. The new version that fixed the bugs for the N1 is awesome! I had downloaded "Better Keyboard" because I had a Blackberry Pearl, and
LOVED it's keypad. Unfortunately Better Keyboard's condensed QWERTY keypad is not intuitive at all, and you never get the word you are trying to type. (Even after messing with custom dictionary)
I hope that someone who was a "Pearl Lover" creates another condensed keyboard that is intuitive, and works like the original. If that happens, I may jump ship; until then, Swype it is... Go to this forum topic, and click the corresponding link.
Swype Works!!! "Landscape" and "No Errors"