Image source: Microsoft Wikipedia says: Handwriting recognition is the ability of a computer to receive and interpret intelligible handwritten input. The image of the written text may be sensed from a piece of paper by optical scanning (optical character recognition). Alternatively, the movements of the pen tip may be sensed by a pen-based computer screen surface. Handwriting recognition principally entails optical character recognition (OCR). A complete handwriting recognition system also handles formatting, performs correct segmentation into characters and finds the most plausible words. The elements of an on-line handwriting recognition interface typically include: a pen or stylus for the user to write with. a touch sensitive surface, which may be integrated with, or adjacent to, an output display. a software application which interprets the movements of the stylus across the writing surface, translating the resulting curves into digital text. More from wikipedia . . .

Useful resources for handwriting recognition

• Using a tablet PC with handwriting recognition software (Source: Microsoft)
  
  
• Handwriting recognition in Vista. Vista handwriting is incredible . . . according to one impressed user. Read his comments . . .
  
  
  
  

  Vista handwriting recognition in practice:	Handwriting recognition and Microsoft Office (using a whiteboard)
  Math recognition using Silverlight and Google:	What is Microsoft Silverlight?
  Installing and setting up Silverlight (Microsoft video)

  
  
  Also have a look at Touchscreens and Tablet PCs