Windows Journal is to make handwritten notes. When you launch Journal first time, it installs Journal print device, which allows you to save (= print to Journal) images to Journal. You can then write your notes to the image.
The cursor is shown as a dot because of this. You can not type to a Journal note using your keyboard, instead you use your mouse (or grapchics tablet) to write to it.
Windows Journal is included in every edition of Seven from Home Premium and better. The program executable is Journal.exe
in Program Files\Windows Journal
Here's a typical example of using Journal. Save (=print) an image, in this example a web page, to Journal, then make your handwritten notes to it: