This paper presents the online handwriting recognition system NPen++ developed at the University of Karlsruhe and Carnegie Mellon University. The NPen++ recognition engine is based on a multi-state time delay neural network and yields recognition rates from 96% for a 5,000 word dictionary to 93.4% on a 20,000 word dictionary and 91.2% for a 50,000 word dictionary. The proposed tree search and pruning technique reduces the search space considerably without losing too much recognition performance compared to an exhaustive search. This enables the NPen++ recognizer to be run in real-time with large dictionaries. Initial recognition rates for whole sentences are promising and show that the MS-TDNN architecture is suited to recognizing handwritten data ranging from single characters to whole sentences.