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You can annotate pdf documents and create new handwritten notes. I use my iliad for taking notes in meetings and use the software available from irex to convert to editable documents.
You will ned to turn word and powerpoint documents into pdf in order to annotate.
The annotations done to pdf documents is a separate document to the pdf but simple tools are provided to merge the relevant pdf with its applicable annotation file.
I think the note files are png format.
Hope that helps
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