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Speech recognition software (Dragon etc.)

My dad has Dragon and he really likes it. He writes a lot, but can't type very well so it helps him. He also lectures a lot, so he sometimes uses it to transcribe parts of his lectures off of cd. The more you use them, the better they get. They aren't perfect, but quite good if you can't type fast enough to keep up with your thought process.

lowsound
 
As far as OS-based recognition goes, Microsoft took a huge leap forward in the last 3-4 years. The software that comes with Windows 7 is very accurate. This goes for speech, and handwriting recognition.

If you want to go beyond Windows' abilities, Dragon is probably your best choice.