Yes, you read correctly. My exciting tool today is a pencil. But not just any pencil, mind you. A mechanical pencil, so it never needs sharpening. Plus, it is designed to be used on fabric, so the leads are strong. Plus, the leads come in white and black. Plus, it has an eraser on the end. Plus, refills are available for both leads AND the eraser. Seriously, I just got this and I think I'm going to enjoy it very much. By Collins (a division of Dritz) and it is about $12 at your fabric store.
April 6, 2009 Update: Just added them to our store here!