Paper goes digital

Livescribe just launched their new product that essentially converts whatever one can write on a paper lazed with special dots into digital media. There is a pen, the size of a Montblanc which is loaded with a computer chip. Via an on-board camera the pen senses hand writing movements and is able to capture the information which when docked to a laptop can be rendered. One can also record a lecture while taking down notes and e-mail it to someone else. Livescribe has several animations on their website detailing this.
NYT covers this in great detail.