Motorola Droid X2 :: Swype Not Becomming Active As Keyboard Input?

A brief history if it matters to trouble shooting this. I initially had to hard reset my X2 because the data encryption feature caused some unwanted effects, i.e. the data encryption feature did not work properly. Since that hard reset, I left the default keyboard input method as multi-touch. Just today I thought I woud like to try Swype. However once I bring up the keyboard input options and select the radio button by Swype, it stays greyed out. Are there some possibly 'lock out' options I might have selected that doesn't allow me to select Swype? I know Swype works because I had it before the hard reset.