I'm having exactly the same problem: Windows Journal cannot initialize the
inking components. Trying "journal.exe /repairnotewriter" brings excatly the
same error message.

More symptoms:
Character pad seems to be inactiave (there is just a gray area where you

are usually supposed to be able to write)
see screenshot: http://www2.ohrt.org/upload/tabletpc...cter%20pad.PNG
The writing pad is not clickable at all (the button is disabled)

Tooltip: "The writing pad is not available for the language you have

selected."
The display keyboard works.

OneNote works fine.
Tablet PowerToys work as well.

After installing Microsoft Windows XP Tablet PC Edition 2005 Recognizer

Pack, I tried to install writing support for many languages (French,

Spanish, Italian, German). Installing it for English was not possible

(no option to select writing support (even though English keyboard is

active). Same behaviour for all languages.

Note: Before I was not able to activate the tablet input area at all. So

I reinstalled SP3 which brought me to this (slightly improved) state.

Note: Region settings -> languages -> details -> advanced:
-all text based services are NOT deactivated.
-services are supposed to be supported by ALL programs.

What else could be of help?
Win XP Tablet PC Edition 2005, SP3 (German)
Thinkpad X61 Tablet