I've just found this very useful and figured I'd make a quick tutorial in our Incredible section.
To delete your saved words you entered into your dictionary, such as nvm or NOOOOOO (words that don't come with it) just do this:
Go to settings>language and keyboard>touch input>user dictionary>click menu>click delete and check the boxes of the ones to get rid of> click delete again
Hope this helps someone else! I had way too many typo's saved in there!