I just did a google search for "xword" and found TWO programs named "xword":

xword-0.07
Xword-1.0

The first appears to be C++ code and requires the gtk-- toolkit.
The second is written in python and requires PyGTK2.0. From looking at the xword garage project page, it is built on the python version.

If you can find PyGTK2 for OS2008, there are just a few files to be downloaded from the xword subversion repository (several .png files and one python script).

EDIT: I realized that I had PyGTK2 installed and so I would be able to test out the code. It turns out that it DOES work! However, you need to use xkbd on the N800, and it is extremely slow.

From looking at the subversion repository again, I think that some progress had been made on packaging up the whole thing (since there was an "xword.desktop" file), but I couldn't find a .deb for it.

So, if you are willing to do the hard work of downloading the files and manually installing them, AND you are okay with using xkbd, AND you can tolerate the speed, xword may satisfy your needs.