Nexus S Gingerbread 2.3.1 OTA update caused swype to enter "limited functionality" (corporate speak for stop working). Hope swype offer their upgrade soon, swyping is sooo addictive.
found the way out: re-installed swype, it's back again. A message from Swype or at least a note on their website would have been nice. ‎- лохматая стереометрия