I find Microsoft OneNote extremely helpful. It lets me do the briefs and reading notes on one part of the page with the class notes on the other so I can tie specific class notes to specific case notes. It's also really easy to search if you have an open laptop exam. I am also not a huge fan of outlining and this lets me avoid most of that.

I'm one of the few in my classes who take notes the old-fashioned way, with a spiral notebook and a bic. I tried the laptop thing for the first week or two of 1L year and decided that although my fingers were moving and words were appearing on the screen, I wasn't really thinking about what I was typing- and the words on the screen were the only remnants of thoughts I had possessed just seconds before. So I reverted back to writing by hand (using incredibly intricate shorthand), and found that the process of writing things out by hand made the information stick in my mind much better.
I eventually type a very condensed version of my notes towards the end of the semester, but at that point it's just for organization purposes for open book exams. For me, writing things by hand is definitely the way to go.

Another thing I've found really helpful is handwriting a mini-brief of each case in the actual margins of the casebook while I'm reading. I write the essential items next to the paragraph where they're discussed, and it's been great to refer to when I'm called on.

I too have reverted to hand written note-taking, even for the classic fast paced information overload type class. I found that my computer was too distracting, either internet access or solitaire were too tempting. I found that I paid much more attention if I had to listen and distill the lecture into hand written notes. At the end of the semester, I turned some class notes into typed outlines. I waited until the end because I am a crammer when it comes to studying for law school tests. I could have just as easily turned them into typed outlines on a weekly or bi-weekly basis.

I also take class notes by hand (with one exception-a class where the professor literally just talks too fast).
I find I have better retention of things I write by hand, so when I'm studying I also do a lot of hand written work (filling in a skeletal outline with details, exceptions, etc. as a way to memorize them).

this conversation makes me think of my bar review (last summer, passed ny and mass on the first try!) - i took notes on my laptop all through law school, but decided to switch over to (very messy and fast) handwriting for barbri. it made all the difference in the world - i put thought into my notes, and learned it without having to force myself to memorize pages of printouts. i wish i had switched to handwriting earlier!