Microsoft Office Document Imaging (MODI) is a Microsoft Office application
that supports editing documents scanned by Microsoft Office Document Scanning.
It was first introduced in Microsoft Office XP and is included in later Office
versions including Office 2007. It is no longer available in Office 2010. MODI
allows users to Scan documents, recognize images using OCR, view a scanned
document and Annotate scanned documents including using ink on a Tablet PC.
(more:
http://en.wikipedia.org/wiki/Microsoft_Office_Document_Imaging
)

Free from Microsoft SharePoint Designer 2007 (freeware), MS Office XP/2007
contains this too.

Still available for Win7 32bit & 64bit