hi george,
i am running ubuntu 12.04. as far as wine, the version i am using is wine 1.4.
with regards to wine installation etc. i added all the recommended add on. one thing i found quite usefull was the following overides in wine:
jscript (native, built in)
msvcr90 (native, builtin)
msxml3 (native)
oleaut32 (native, built in)
riched20 (native, built in)
now, i also installed wine from the ubuntu repository and the sword installation was the latest one, i did not upgrade any version. not sure if this is of any help, but the sword module is working quite well, full search functions, highlight etc. although, i do not use the sword module download etc.
hope it helps,
cheers