Ok so here's a long story short. Me and the guy were going out for over a year but one of my enemies made the rumour that I wanted to dump him, she told everyone and he found out and was nearly in tears.
I told him the next day face to face what had happened and he didn't speak or look at me once and he walked away from me. Then, the day after that I sent him a letter once again, explaining everything that happened. But still, he was ignoring me. He has been ignoring me for precisely 2 months now and he couldn't even look at me and he was doing anything to be away from me. But now, all of a sudden, he doesn't seem to be as distant anymore and he's started smiling at me?! I don't understand because all this time he ignored me and now this all of a sudden!? Anyone have any idea why he's acting like this?

Thanks for any answers :)

He's a child? He finally realized it was time to pull up his big boy pants?

I mean honestly why would you want to be with someone that plays games? Are you two in high school? His behaviors would seem to indicate that and some might even say middle school.

He's acting like a child and you are excited that he's paying attention to you....after all this time, I would think you would have realized that he isn't the one for you because he's immature.

Yeah we are in high school.

Basically, if he couldn't talk to you about rumors that someone else was spreading then you don't need to be with someone like that anyway. No communication is definitely one problem. Obviously no trust either if he took what she said and believed it straight out.

Yolo, instead of being happy that he is done treating you like nothing, it is time to give him some of the same medicine he gave you but move on.

Rumor? Are you sure it was a totally unfounded lie? Your words have a hint of otherwise:
"I told him the next day face to face what had happened"
"I sent him a letter once again, explaining everything that happened."
I have a feeling that you complained about him and may have even said that you were thinking of dumping him, in a moment of anger. Even if you said you should dump him for something he did, that can get all twisted around in gossip.

It would explain why you are willing to consider taking him back.
Please correct me if I'm wrong.
If I'm right, then you owe him an apology. Of course he owes you one too, for listening to everyone but you. Talk it out and consider it part of the learning process.