I've been using a Casio EX-word (XD-SP6600, about ￥24000) for the past few months and I've been quite pleased with it. Most denshi jisho (including this one) are really intended as a reference for Japanese people; as such, the interface is all in Japanese, and the dictionary data included is targeted at native Japanese speakers.

It's not too hard to use even if your written Japanese skills are basic. My Casio came with a four-page English getting-started sheet. Also, my coworker's ten-year-old Wordtank has an English mode - perhaps there is a similar feature on modern Canon Wordtanks.

IMO the key is to have the right dictionary data. Again, the built-in dictionaries on most devices are aimed at native Japanese speakers. Casio has a system for the user to buy additional dictionaries and load them onto the device. They might be around ￥10000 apiece, depending on the dictionary.

I highly recommend the Green Goddess, available on CD from Casio - it's far more useful than the "Progressive" Japanese-English dictionary included with my device. (Note that the Green Goddess comes built-in on the Canon Wordtank G70 and SII SR-G10000, although both are fairly expensive.)

As for readings of individual kanji, look at Kodansha Kanji Learner's Dictionary, also a Casio CD, which also has English meanings and stroke-by-stroke drawings for each kanji, and lets you search by SKIP code if you're into that.

As for handwriting recognition, I tried a few other models in an electronics store and thought the Casio's recognition easiest to use. YMMV.
Just make sure you know how to get the stroke order correct; otherwise none of the models will work right.

Good luck! If you're in Japan, try them out at an electronics store. Let us know what you decide. And remember that the button labeled "ジャンプ" is very useful