How does OneNote work with Tablet PC?
OneNote enables you to capture, organize, and reuse your notes the way you want with laptop computers, desktop computers, or Tablet PCs. OneNote has enhanced capabilities that enable people using Tablet PCs or pen-input devices with their desktop or laptop computers to handwrite notes or draw diagrams easily. They can both handwrite and type notes on the same page. Those without pen-input devices can use their mouse to draw and sketch diagrams in OneNote.
With a Tablet PC, you can write and draw with digital ink—a new technology from Microsoft for working with handwriting as if it were text. The features of typed text notes in OneNote are also available with digital ink notes, such as bullets and numbering, converting handwritten notes to text, and searching handwritten notes.
People using pen-input devices with OneNote on their desktops and laptops will have their handwritten notes saved as picture files. While these notes will appear as the user's own handwriting, they will not have the enhanced features of digital ink, such as bullets and numbering or being able to search them with the Find feature.
The above information is from Microsoft's Frequently Asked Questions About OneNote 2003: http://www.microsoft.com/office/preview/onenote/faq.asp