I echo Jason - I love logbook pro. What I do now is enter the flights into LBPro, and then periodically I put them in a paper log as well. The only time I still "must" use paper is for dual instruction, but NC software has promised the next version of LBPro will support ink, so the instructor will be able to sign right on my tablet PC. That may (read on) change the paper logging I do.
The only issue with logs and "legal" stuff that I'm aware of relates to the dual instruction and other endorsements that may be entered with signatures into your logbook. The Electronic Signature Act passed in the late '90s was nice and vague and deemed that any electronic facsimile of a signature was acceptable UNLESS individual agencies wrote specific policy to define them. IRS did for e-filing. DEA did for the controlled substances transactions they regulate. I don't know what FAA has done, but I bet the answer is nothing(so far).
It would be prudent to keep your paper logging of instruction and endorsements, until there is a clear precedent set for digital logs and signatures.
Last time I went for an interview, I brought my printed log from logbook pro and that was used. I had the paper logs to back stuff up, but the folks didn't even bother once they saw that I had them.