Dr. Sanjay Gupta says that investigators don't know but that there is a problem with fluid buildup in the lungs.
"The spreading virus starts a cascade within the body as the immune system overreacts. Fluid builds up in the lungs and inflammatory cells throughout the body react to the infection."

The effectiveness of homeopathic remedies like Oscillo is questionable. There are no clear studies. Right now, the only things that work against the swine flu seem to be a previous influenza vaccination (because it's a combination of several strains, previous vaccinations reduce the severity) and Tamiflu, an anti-viral drug.

In the case of a suspected swine flu infection I wouldn't gamble with homeopathy and go straight for the science. This flu is so strong that it's killing healthy young adults not the old or immunosuppressed like it happens normally with flu.
Source(s):
http://pagingdrgupta.blogs.cnn.com/category/swine-flu/
http://www.bizjournals.com/sanfrancisco/stories/2009/04/27/daily13.html?jst...
http://nccam.nih.gov/health/homeopathy/#q8

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Most likely cytokine storm or bacterial pneumonia
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Dumblonde covered most of this but I figured I can add a little--

The flu, at least the 1918 flu, killed people with strong immune systems (those at the ages of 24-45 were at the highest risk). It essentially was an over active immune reaction that caused extreme vasodilation in the lungs. Normally-- loosening the cell-cell junctions in your lung tissue a little bit to let things like immune cells, and antibodies into infected tissues is okay-- it isn't okay when it happens at such a level that you drown yourself to death. Other things also happen... like organ failure caused by cytokine storm (cytokines are immune signaling molecules).

Asthma medication won't work as that functions just to open up a tightening airways (bronchodilation)... it won't relieve fluid in your lungs.

Decongestants do help to reduce vasodilation, and they are included in many over the counter cold/flu medications. Unfortunately, it isn't as simple as prescribing a mega dose of some decongestant to prevent fluid from getting into your lungs as immune cells still need to get in there and fight off infection and there are side effects.

As for Oscillo-- it is, unfortunately just water. That is what all homeopathic remedies are (by definition). Homeopathy essentially assumes that if you put symptom-causing agent in water and shake it up a bunch... and then dilute it, and shake/dilute it some more--until there is no chance of the original symptom-causing agent in it (there are specific directions for how much to dilute/shake it), that the water retains some sort of vibrations of the agent and when you ingest it-- those vibrations somehow fix your disease. Unfortunately liquids don't work like that. They simply take the shape of whatever container you put them in, and unless you freeze them they keep vibrating randomly. That is just how the physics works. Most positive results have been either confused with the placebo effect, or not done with a double blind study (neither the patient or doctor know which treatment is being administered).

Don't confuse homeopathy with herbal remedies, those actually can have active ingredients in them-- and at least in the case of St. Johns Wort, they do. The biggest problem with herbal meds is that they are unregulated by the FDA, which means no one has published any science that back up their claims, and two-- if there is an active ingredient in the herb then, depending on the growth conditions, you can get an overdose (or underdose) of the active ingredient.

Check out www.whatstheharm.net for true accounts some of the bad things that can happen to you if you take herbal remedies and/or homeopathic remedies. They also have lots of stories about what can go wrong when people practice other pseudo scientific beliefs.
Source(s):
http://www.ncbi.nlm.nih.gov/pubmed/17869148
Graduate level virology class I'm taking right now-- Field's Virology book.
http://www.quackwatch.com/01QuackeryRelatedTopics/homeo.html
http://www.healthcentral.com/asthma/medications.html
http://whatstheharm.net/herbalremedies.html
http://whatstheharm.net/homeopathy.html
Phsyics and chemistry classes* if you would like some more information on the physics of water just ask and I will find some for you.

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Swine Influenza (swine flu) is a respiratory disease of pigs caused by type A influenza viruses that causes regular outbreaks in pigs. People do not normally get swine flu, but human infections can and do happen. Swine flu viruses have been reported to spread from person-to-person, but in the past, this transmission was limited and not sustained beyond three people.

In late March and early April 2009, cases of human infection with swine influenza A (H1N1) viruses were first reported in Southern California and near San Antonio, Texas. Other U.S. states have reported cases of swine flu infection in humans and cases have been reported internationally as well.

CDC has determined that this swine influenza A (H1N1) virus is contagious and is spreading from human to human. However, at this time, it not known how easily the virus spreads between people.

The symptoms of swine flu in people are similar to the symptoms of regular human flu and include fever, cough, sore throat, body aches, headache, chills and fatigue. Some people have reported diarrhea and vomiting associated with swine flu. In the past, severe illness (pneumonia and respiratory failure) and deaths have been reported with swine flu infection in people. Like seasonal flu, swine flu may cause a worsening of underlying chronic medical conditions.

Spread of this swine influenza A (H1N1) virus is thought to be happening in the same way that seasonal flu spreads. Flu viruses are spread mainly from person to person through coughing or sneezing of people with influenza. Sometimes people may become infected by touching something with flu viruses on it and then touching their mouth or nose.

Infected people may be able to infect others beginning 1 day before symptoms develop and up to 7 or more days after becoming sick. That means that you may be able to pass on the flu to someone else before you know you are sick, as well as while you are sick.

First and most important: wash your hands. Try to stay in good general health. Get plenty of sleep, be physically active, manage your stress, drink plenty of fluids, and eat nutritious food. Try not touch surfaces that may be contaminated with the flu virus. Avoid close contact with people who are sick.

CDC recommends the use of oseltamivir or zanamivir for the treatment and/or prevention of infection with these swine influenza viruses. Antiviral drugs are prescription medicines (pills, liquid or an inhaler) that fight against the flu by keeping flu viruses from reproducing in your body. If you get sick, antiviral drugs can make your illness milder and make you feel better faster. They may also prevent serious flu complications. For treatment, antiviral drugs work best if started soon after getting sick (within 2 days of symptoms).

People with swine influenza virus infection should be considered potentially contagious as long as they are symptomatic and possible for up to 7 days following illness onset. Children, especially younger children, might potentially be contagious for longer periods.

Germs can be spread when a person touches something that is contaminated with germs and then touches his or her eyes, nose, or mouth. Droplets from a cough or sneeze of an infected person move through the air. Germs can be spread when a person touches respiratory droplets from another person on a surface like a desk and then touches their own eyes, mouth or nose before washing their hands.

We know that some viruses and bacteria can live 2 hours or longer on surfaces like cafeteria tables, doorknobs, and desks. Frequent handwashing will help you reduce the chance of getting contamination from these common surfaces.

Protect yourself from getting sick :

There is no vaccine available right now to protect against swine flu. There are everyday actions that can help prevent the spread of germs that cause respiratory illnesses like influenza. Take these everyday steps to protect your health:

Cover your nose and mouth with a tissue when you cough or sneeze. Throw the tissue in the trash after you use it.

Wash your hands often with soap and water, especially after you cough or sneeze. Alcohol-based hand cleaners are also effective.

Avoid touching your eyes, nose or mouth. Germs spread this way.
Try to avoid close contact with sick people.

If you get sick with influenza, CDC recommends that you stay home from work or school and limit contact with others to keep from infecting them.

Precaution :

If you are sick, limit your contact with other people as much as possible. Do not go to work or school if ill. Cover your mouth and nose with a tissue when coughing or sneezing. It may prevent those around you from getting sick. Put your used tissue in the waste basket. Cover your cough or sneeze if you do not have a tissue. Then, clean your hands, and do so every time you cough or sneeze.

Washing your hands often will help protect you from germs. Wash with soap and water. or clean with alcohol-based hand cleaner. we recommend that when you wash your hands -- with soap and warm water -- that you wash for 15 to 20 seconds. When soap and water are not available, alcohol-based disposable hand wipes or gel sanitizers may be used. You can find them in most supermarkets and drugstores. If using gel, rub your hands until the gel is dry. The gel doesn't need water to work; the alcohol in it kills the germs on your hands.

If you live in areas where swine influenza cases have been identified and become ill with influenza-like symptoms, including fever, body aches, runny nose, sore throat, nausea, or vomiting or diarrhea, you may want to contact their health care provider, particularly if you are worried about your symptoms. Your health care provider will determine whether influenza testing or treatment is needed.

If you are sick, you should stay home and avoid contact with other people as much as possible to keep from spreading your illness to others.

If you become ill and experience any of the following warning signs, seek emergency medical care.

In children emergency warning signs that need urgent medical attention include:

Fast breathing or trouble breathing
Bluish skin color
Not drinking enough fluids
Not waking up or not interacting
Being so irritable that the child does not want to be held
Flu-like symptoms improve but then return with fever and worse cough
Fever with a rash
In adults, emergency warning signs that need urgent medical attention include:
Difficulty breathing or shortness of breath
Pain or pressure in the chest or abdomen
Sudden dizziness
Confusion
Severe or persistent vomiting

Like seasonal flu, swine flu in humans can vary in severity from mild to severe. Between 2005 until January 2009, 12 human cases of swine flu were detected in the U.S. with no deaths occurring. However, swine flu infection can be serious. In September 1988, a previously healthy 32-year-old pregnant woman in Wisconsin was hospitalized for pneumonia after being infected with swine flu and died 8 days later. A swine flu outbreak in Fort Dix, New Jersey occurred in 1976 that caused more than 200 cases with serious illness in several people and one death.

http://www.cdc.gov/swineflu/investigation.htm
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I would assume its inadequate medical care causing the deaths.
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When analyzing the causes for death concerning the swine flu it is important to take a look at the biology of the swine influenza virus. First, it is noteworthy that while the swine flu tends to cause high levels of illness in pigs the death rate among pigs appears to be rather low. So why then does it seem to affect humans more gravely? Similar to other influenza viruses, the viruses that comprise the swine influenza tend to change constantly, and when pigs are infected by viruses from different species (such as the avian influenza, human influenza, or swine influenza) the viruses have the opportunity to reassort, or swap genes, allowing a mutated version (or mix of different influenza viruses) to emerge.
http://www.idph.state.il.us/flu/swine_flu_fs.htm
Since this swine flu virus is a new strain, people, especially young adults, adolescents, and children, may not have the necessary defenses built up to fight off the virus, even if they are otherwise healthy. Thus, when young, healthy people are infected with the swine flu virus their immune systems oftentimes trigger a “cytokine storm”, which is an overreaction of the immune system that can be harmful or damaging to the body (http://newsblaze.com/story/20090427092841mcco.nb/topstory.html). This “cytokine storm” is so detrimental to the body that it can cause multiple organ system failure, since the person’s immune system may attack the body’s own (healthy organs and organ systems). Because it can occur rapidly, people who suffer a “cytokine storm” often die (http://www.fluwikie.com/index.php?n=Science.PrimerCytokineStorm
). Since healthy body systems are affected by this phenomenon and they persons harboring such healthy organ systems are typically people between ages 15 and 60 years old, this age group would then be the most likely to die from influenza that triggers a “cytokine storm”.
A potential explanation may be that, since cytokines enable the body to communicated between cells, and a cytokine storm may overwhelm a person’s nervous system and cause trouble breathing.
Aside from this phenomenon, the cause of death from the swine flu appears to be more comprehensive than may be initially believed. An article from Monday 27 April 09 on Slate, http://www.slate.com/id/2217019, proposes that genes potentially attributed to a more deadly outbreak of the swine flu in Mexico as compared to outbreaks in the US. In Mexico, it appears that people ages 20 to 40 who contracted the swine flu mainly died as a result of severe pneumonia (http://www.dailysentinel.com/health/content/shared-gen/ap/Health_Medical/MED_Swine_Flu_Victims.html). Some speculations as to why this is the case, include:
Genetics of the virus: Genetic analysis of virus samples in the two countries is continuing. The CDC says tests results show the U.S. and Mexican viruses are essentially the same, but some experts have not ruled out the possibility that the virus is changing as it leaks across the border to the north.
Nutrition: Perhaps nutrition levels are worse in some Mexican communities — poor nutrition can degrade a person's immune defenses, and make them more susceptible to illness.
Air quality: Air quality in Mexico City is considered terrible. That too may have affect patients confronted with a novel respiratory disease.
Medical care: Access to medical care has been an issue in Asia, where a rare bird flu — which does not spread easily from person-to-person — has killed more than 200 over the last several years. Maybe Mexican patients have also had trouble getting medical care or antiviral drugs, some have speculated — even though the government provides health care.

Further, similarly to the common flu, swine influenza can affect especially those individuals with already weakened immune systems can worsen pre-existing medical conditions in people. As a result these affected individuals may succumb to the virus. An overall worrisome factor is that people do not have natural immunity to the disease since the virus continues to mutate.

Thus it appears there may not be a single cause of death for people in general when it comes to the swine flu (although a large number of deaths does seem to point to some type of respiratory impairment or negative effect on the lungs, such as pneumonia), but rather a wide range of possibilities exists of how any particular individual may succumb to the disease, depending on his/her medical history, genetic composition, bodily/immune reaction to the virus, and other factors.
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