my uncle can't type with keyboard quickly in our local language but they can write on paper using pen very quick. Is there any other easy hardware to write e-mail, letter, chatting in windows XP.
like we write freely on paper.
Handwriting recognition is actually built-in by default in Windows XP. Look here for how to install it:
Of course you'll still need a "writing tool" to make use of it. From the requirements:
You should check out Wacom's Bamboo line. The one I've linked there (Bamboo Pen) is probably the best for your uncle, though it's not quite as big as an 8.5" x 11" sheet of paper. This device's dimensions are just 9.8" x 6.9", though that should be good enough. If you are interested in paying another $130 for a slightly better product that is also bigger (8.8" x 13.3"), check out the Bamboo Fun.
The first one is only $70. That's pretty reasonable.
If you have a scanner (used for photos, documents, etc.) you could hand-write something (if your writing is clear enough) and use OCR technology to translate that into text. You can definitely find free OCR software very easily, and that's only if it didn't come with the scanner (which, it usually does). This is still assuming you have a scanner.
Without a scanner, your best option would probably be coughing up the $70 and buying the Bamboo Pen.