I am looking for a device with which I can take down notes on paper and transfer it to a PC later. Handwriting recognition should work, either through the device's bundled software or through Windows 7/Office suite.

There's a local brand iBall with a product called TakeNote which allows you to write down notes on an A4 size paper and transfer them to a PC as image files. You can take down notes even when not connected to a PC, which is a great plus. Don't know if handwriting recognition is any good, though they claim to have bundled software for it. No demos available on this, either offline or online.

Another option is Wacom, but I don't know if any of their products allow me to write on a plain paper and then transfer it to the PC.

I need this device for taking down notes, annotating documents and drawing diagrams for illustrating the flow of work or prototyping (basic/sketchy, not very graphic), and not for graphics designing or photo editing.

Have any of you been using a similar product?