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Yes, an external Wacom tablet would work. In fact, you can draw in MS Journal using a mouse, if you want. It's just a whole lot easier to have the "Direct Manipulation" advantage of a digitizing screen. In addition, a tablet can be easily folded over and carried, while you annotate - which is tough to do with an external device.
Well, first let me say, in the spirit of full disclosure, that I work for HP. That said, there are two tablet pcs to consider - one is a "consumer" tablet pc, the Touchsmart tx2z - the other one is lighter weight, but more expensive, 'enterprise" grade tablet pc like the Elitebook 2730p (I use an older 2710p and I *love* the extended battery that gives me 7-10 hours of run time!).
This particular video was recorded using Camtasia software from Techsmith. There are some other screen capture programs, some of which are free webservices, but Camtasia is my favorite.
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