While I've given a lot of recent attention to the Livescribe Pulse pen (in fact using it for recording during a usability test this week), I wanted to bring attention to a couple of other options. But comparing Iogear's Mobile Digital Scribeor Dane-Elec's ZPen to the Pulse isn't really apples to apples. While all three devices can digitally record your handwriting, only the Pulse synchs your notes with recorded audio. This critical feature makes it extremely valuable for documenting and reviewing information. On the other hand, the Pulse requires the use of special paper for tracking purposes. So if you're just looking for a way to digitize and translate your handwriting to text, (albeit, poorly) these pens may be useful to you.
The New York Times' David Pogue has a written review (plus requisite cheesy video) for the Mobile Digital Scribe and ZPen that can give you more information since I haven't had first-hand experience with either of those two devices.