Bamboo
I tried the targus stylus first and found it was too fat to be effective for writing. I returned it and went with the bamboo. It's got a thinner tip which I found to be the most important thing for me to be effective in writing with it on the iPad. I am trying to go paper free for work. I like it quite a bit even with the high price.
I tried out a bunch of note taking apps as well and settled on Noteshelf. It has Dropbox integration, wrist protection, and a great zoom. I compared it to notes plus, penultimate, and a few others and just felt Noteshelf worked the best with the least lag.