Tax Man:Sadly, I went back to IE6 and, of course, it works perfectly again. So, it is definitely IE7 that is somehow breaking it. The floattip box still pops up but when you enter text in the handrwiting window and hit "insert" nothing inserts. I tried loading Firefox 2.0 and had even less luck with floattip. I couldn't even get the TIP box to pop up.
In firefox you have to install an addon that can be downloaded in the same firefox page.