From Swype Help
Swype supports text entry in a number
of languages. To switch between
Tap the SYM key.
Tap the key showing the abbreviation code for the currently
active language (e.g. "EN" for
A Language Choice window displays, showing available languages.
Select the desired language by tapping it in the list.
To toggle between the current language
and last-used language, Swype from the
Swype key to the key with the current
However if the Swype was preinstalled (as seems the case by way of the update given to you) it seems that you are stuffed as there is no way to add a language, or if it comes to that, edit a preinstalled language with Swype.
This is probably the one downside of Swype, whereby they have a business model to sell to carriers not to the public and a preinstalled Swype is neither updateable or removeable.
Solution: spend a couple of bucks on the excellent SwiftKey in the Market, it has editable and readily available language dictionaries and is very full featured and is directly comparable to Swype.