Students with dysgraphia often experience significant success using assistive technology. There are some great tools to help these children express their ideas without getting blocked by their writing difficulties. Please see LD OnLine’s in depth section on adaptive technology.
You may also want to check out LD OnLine’s articles on writing and spelling, which discuss accommodations and techniques to improve handwriting.
Software such as Inspiration helps kids organize their ideas and develop a paper or project by giving it a visual structure.
You could also check out Universal Design for Learning, a model for teaching students with disabilities that uses digital formats to adjust the curriculum to fit the student, rather than making the student adjust to fit the curriculum.