Yes, Dragon works and is usable -- if you spend enough time to train it and yourself. Nothing beats a good transcriptionist!
The microphone is critical for accurate recognition, otherwise you mess up he and she, b and p, d and t, etc. -- and even now it frequently drops s's at the end of words. I have been doing this for about 6 months, and it just gets better and better. I use a Philips SpeechMike, which feels just like a dictaphone. I also have used a USB headset and more recently a Sennheiser bluetooth unit which is really comfortable and accurate, but is a pain to get paired with the Bluetooth on my laptop, and won't work at all under Win7 (works pretty well with XPPro on a T61).
I wish someone would give me a "medical" version to try it out, but I'm not ready to fork over another $1000 or so quite yet -- but with training, I have done fine with the standard V11. You can't dictate directly into AC on the same machine as Dragon, but you can use the Dragon Pad and cut and paste or else use Remote desktop on a second machine with Dragon on the local machine and AC on the remote.
