swype the word into a text entry field, double tap to highlight than hit the swype key. An option should pop up asking if you want to delete the word.

 

that works to delete a word from the dictionary.

i have another question though. How do you add a period, question, or exclamation mark after typing the last word of the sentence? Do you have to manually punch it in or can you swpe over it?

 

Swype | Text Input for Screens Go to the tips section and view the videos. Everything you want or needed to know.

 

is there no voice to text with swype?

i am using that AF poster's version of swype posted not long ago

 

Yes there is if you are using Handcent. Hit menu, then then "speak".