Pok�mon Fire Red Dragonite: Should I delete Toxic for Swords Dance?

yes, dragonite is not a staller and sword dance will help it, however dragon dance would be even better. Also, just so you know, if you are really playing fire red, then waterfall is a special type move. The physical special split occurs in gen four (diamond/pearl). Consider replacing it with a move from a physical type (ground, rock, dragon, poison, dark, steel, normal, fighting bug)