An electronic logbook is definitely the way to go now. Makes filling out applications and keeping track of currency really easy. Definitely have a paper backup though. Whether it's just keeping up with a paper one or printing out pages from the electronic one it's an absolute necessity. I currently use Logbookpro (Microsoft Access based) and it's pretty great, others I know just use an excel spreadsheet and if you are pretty good with excel it works just as well. I'm thinking about the one from Coradine though.