Similar posts has been seen vaguely in a couple of places, but they are all very convoluted and should be deleted in light of this one. This is a hyper-confirmed version I have borrowed from XDA (I take no credit).
Just make sure to enable non-market apps:
Menu -> Settings -> Applications. Check "unknown sources."
Install by putting it onto your sd card, then selecting it with a file explorer, and install,
Then select it:
Setting>Keyboard>check swipe. and then hold finger in textbox >Input method>Swype
(taken from post)
and you are all good to go! \\/
Swype, for those who don't know, is pretty much the best darn thing to happen to keyboards since T9 (In fact the man who created it co-founded T9). It's a keyboard that's uber-fast and allows you to quickly and efficiently dish out texts or email or whatever..