Sorry, I should have clarified that my example was for Shapewriter. I think I prefer to approach to Swype.
I'm now tried:
1. Default keyboard
2. Better Keyboard
5. HTC Hero keyboard
Of all of these the Hero keyboard wins hands-down for me. The problem is it's not written for the Droid and unlikely to get edited to work on it. It's mainly fine except that the correction bar is slightly in the way of the Send button and in wide mode it doesn't fully extend to the end of the screen as the Hero isn't that wide.
Its ability, for example, to type a number but just pausing on a key to get to its secondary function is excellent. Better Keyboard has something similar but it requires an extra touch. Hold and then select. Don't like it.