Originally Posted by brio

FYI On the Swype Beta forum Michael helpfully posted this:

"I was having the same error saying it was "The Swype package you installed is configured for another device and will operate with limited functionality...". I am running a custom 2.1 ROM on a rooted Moto Droid. When you try and type, Swype will let you "hunt and peck" what you trying to type but not "swype". To fix this press and hold in an "Input" area and select the Android Keyboard, then press and hold in an "Input" area again and choose Swype, it will then start working as normal again until the next reboot."