Originally Posted By polarsnake:
When NASA first started sending up astronauts, they quickly
discovered that ballpoint pens would not work in zero gravity. To
combat the problem, NASA scientists spent a decade and $12 billion
to develop a pen that writes in zero gravity, upside down,
underwater, on almost any surface including glass and at
temperatures ranging from below freezing to 300o C. The Russians
used a pencil.
Interesting trivia, if only it was true.
From Snopes.Com...

Lead pencils was used on all Mercury and Gemini space flights and
all Russian space flights prior to 1968.
Due to the flammability and electrical conductivity of pencil
and it's related component, Paul C. Fisher developed a pen (After
The Apollo 1 Incident, That Kills Three Astronauts) that conforms
to strict criteria as set by NASA at the costs of US$1 million
dollars (Not US$12 billion dollars, as stated on the article). No
development finances was provided the government, and was sold to
NASA for US$2.95 each.
RKA (Russian Federal Space Agency) eventually purchase the pen as
well..., now known as the Fisher Pen...