The $200 gizmo incorporates a tiny camera that records a pattern of dots you create when you write on specially designed paper. When you put the pen into a dock that connects to a Windows PC through a USB port, the pen's "digital ink" is transferred. Then, an image of what you wrote can be pasted into many applications, including Microsoft Word.
With good handwriting-recognition software, this would be a killer app. But Logitech says the software available isn't yet up to snuff. And the special writing paper is pricey: A three-pack of 160-page notebooks costs $24.99. Still, if the IO catches on, prices for the pens and paper are bound to drop. By Steve Wildstrom