Most, if not all, WM devices come with Transcriber as an input method. You activate it then write anywhere on the screen and it uses handwriting recognition to convert it to text. Does the Touch not include Transcriber?
Edit: I've attached a screenshot of Transcriber in action (taken on my Mogul). And if for some reason Sprint took Transcriber out of the Touch ROM, you can download it from Microsoft here:
http://www.microsoft.com/downloads/d...DisplayLang=en