Just saw this in a Tablet PC Buzz forum:
For complete flexibility, you can change the background of your ‘whiteboard’ to graph paper, lined paper or any other design that suits your needs
In addition, NotateIt includes a powerful tool set that you can
use in conjunction with any other Windows application:
screen recording and playback "
Looks like a really useful app and I’m going to give it a try. More information and a trial version available at the NotateIt web site.