" I have installed swish on my Virtual Server but when I go to create the index I get "no unique words indexed". What am I doing wrong? "

You should be sure you read and understand all of the options in the swish configuration file. Specifically the FileRules settings (i.e. files that match the FileRules settings will not be indexed).

For example:

Your htdocs directory has a .htaccess file. On line 40 of your swish.conf you will see this line:

FileRules directory contains .htaccess

This is why the directory could not be indexed. Comment out the line and it will run.