Notepad has long been one of the great things about Windows, a program that's useful, dependable and free. Notepad2 is, according to its web page, yet another Notepad replacement. And this one's a winner.
Notepad2 adds a lot of features to the standard Notepad repertoire, including drag & drop text editing, regular expression searches, Unicode support and syntax highlighting. This makes it especially useful for programmers and web developers who like Notepad's simplicity but are looking for a few extra tools.
I particularly like the auto-indenting and how easy it is to select a highlighting scheme (just press F12, select a scheme and click OK). Free, Windows. Hat tip to Scott Hanselman.
Notepad 2 [Flo's Freeware]