The handheld organizer or personal digital assistant (PDA) is rapidly becoming a popular organizational tool, and there is a need for evaluation of alphanumeric character entry on these devices. The Palm operating system, the most common PDA operating system on the market, uses two methods for character entry, an on-screen virtual keyboard and a single-character handwriting recognition system called Graffiti. An initial experiment was conducted to investigate the character entry rates of novice and expert users of the device for the two methods of input. Experts were found to reach an average rate of 21 words per minute (wpm) using Graffiti and 18 wpm using the virtual keyboard. Novices were able to use Graffiti at a rate of 7 wpm and the virtual keyboard at 16 wpm. These character entry rates are evaluated with respect to some theoretical limitations, a predicted rate of entry based on Fitts' and the Hick-Hyman laws for the virtual keyboard, and pen and paper printing for Graffiti. The potential gain for new character entry systems and opportunities for improvement are discussed.