Any cheap, touch screen devices with word processing?

I was looking for an extremely basic and inexpensive device with optional or no internet for note-taking and basic sketching. It would also be ideal if it was equipped with a stylus. By inexpensive, I mean $350 or less, so the iPad is out of the question. Additionally, it would be helpful if the screen was larger than that of a cellphone like the iPhone, so standard tablet sized.

Check out for Samsung Galaxy Tab 2
- Lightweight slim tablet
- Excellent speed with dual core 1GHz processor to run latest application with no problem
- Excellent device to watch HD videos on YouTube and Netflix
- Smooth screen transition and snappy response
- Great browsing and gaming experience
- Flash is enabled
- Good battery life overall