Yes - of course, it's easy to scan documents, convert them to PDF, then transfer them to the iPad. Of course, as on a PC, a scanned document can't be edited but you can annotate it.
On the other hand, the iPad can handle all the usual 'Office' style documents...
One of our members carried out a survey of Office apps for his company; you can see his conclusions in this thread...
http://www.ipadforums.net/new-member-introductions-site-assistance/22431-hi-all.html
Another comparison was undertaken here....
http://www.ipadforums.net/iwork-forum/36629-office-app-comparison.html
The Apple iWorks Office suite for the iPad has a set of useful Help pages that show their capabilities here...
Pages is Word compatible and can read .doc and .docx files and save in .doc and .pdf
Keynote is PowerPoint compatible and can read .ppt and .pptx files and save in .ppt and .pdf
Numbers is Excel compatible and can read .xls and .xlsx files and save in .xls and .pdf
Apple - Support - iOS Apps - Welcome
Tim
Really the only use I would have for it though would be for documents at work. I was speaking with someone and they talked about being able to scan documents on the computer and then placing the scanned files on to the iPad2. Is this possible?
Also I was reading the stylus system was pretty cheap and am wondering if I could use it for signatures and writing on documents or is it restricted to only certain functions?
