Another announcement today is Livescribe. It's a sub-$200 "Montblanc-size" pen with a builtin "computer with advanced processing power, audio/visual feedback, and substantial memory for handwriting capture, audio recording, and applications". As you write it does handwriting recognition.
"Livescribe’s first key application is “Paper Replay.” When taking notes during a discussion or lecture, the smartpen records the conversation and digitizes the handwriting, automatically synching the ink and audio. By later tapping the ink, the smartpen replays the conversation from the exact moment the note was written. Notes and audio can also be uploaded to a PC where they can be replayed, saved, searched and sent."
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