yeah look at wikipedia
"Uses in the U.S. and Russian space programs

There exists a common urban legend claiming that the Americans spent $11 million developing the Space Pen, and the Russians used a pencil.[1] In fact, NASA programs have used pencils (for example a 1965 order of mechanical pencils[1]) but because of the danger that a broken-off pencil tip poses in zero gravity and the flammable nature of the wood present in pencils[1] a better solution was needed.

NASA never approached Paul Fisher to develop a pen, nor did Fisher receive any government funding for the pen's development. Fisher invented it independently, and then asked NASA to try it. After the introduction of the AG7 Space Pen, both the American and Soviet (later Russian) space agencies adopted it. Previously both the Russian and American astronauts used grease pencils and plastic slates.[2]

Another rumor has it that the Apollo 11 astronauts accidentally snapped off a switch which was necessary to permit them to fire the engine to return to the Earth; and that a Fisher Space Pen was used to press this button. While the incident did occur, Buzz Aldrin has stated that he in fact used a felt-tip pen for this.[3]"
(Bazongaloid, Wed 6 May 2009, 15:07, Reply)