I'm impressed with the hand writing support in Vista. I've mainly used it with MindManager but the TIP panel generally does a great job deciphering my scrawl.
From this Microsoft post it looks like Windows 7 is going to improve this further, maybe the Tablet isn't dead! How long before we see pen support in CAD/BIM?
Engineering Windows 7 : Recognizing Improvements in Windows 7 Handwriting
Microsoft has been working on handwriting recognition for over 15 years going back to the Pen extensions for Windows 3.0. With the increased integration and broad availability of the handwriting components present in Windows Vista we continue to see increased use of handwriting with Windows PCs. We see many customers using handwriting across a wide variety of applications including schools, hospitals, banking, insurance, government, and more.