| Shadowborn |
Aslak is correct. If you read down through the third paragraph of the Swarm entry it says "Swarms of nonflying creatures include many more creatures than could normally fit in a 10-foot square based on their normal space... ."
Are you playing 3.5 or Pathfinder? The PRD clarifies things a bit more, with non-flying creatures taking up a 10ft square, while flying creatures take up a 10ft cube.