Ok, I figured it was something I was doing wrong. I'll try again sometime. I do have one more question for you though...I noticed after I downloaded the pink file on page 2 that I have a bunch of swype keyboard pictures in a folder in my gallery that didn't previously exist so I'm assuming they were from your file but they were blue, not pink. Any clue why that would be?
Edit: Sorry, just saw the last part of your post. Correct, it is no longer under settings/lauguage and keyboard/Input method. The only option was multi touch keyboard. I just used bootstrapper to revert to my previously saved backup so I'm back to what I was before I downloaded the zip file and Swype is now back, stock Swype though.