I have a similar situation, though without the bus rides. I don't use a Palm anymore, either, but I've had 3 of them in the past so I'm familiar with their capabilities.

For my portable GTD implementation, I use a hybrid software/paper solution. I keep my main lists in software, where the database helps me to cross-reference tasks between projects and contexts. However, I print my context-sensitive Next Action lists onto index cards that I carry around throughout the day. Then, each morning, I manually "synchronize" my scribbles and check-marks with the software and print out new cards to replace the nearly-illegible ones.

Instead of the ever-popular binder clip for keeping the index cards together, I use a Buxton Note Jotter for organization on the go. (The Jotter is basically a cheap $10-at-Staples version of the Levenger Shirt Pocket Briefcase.) I keep a few (~5) fresh cards in the front "visible" bit for on-the-fly notes, newly-written notes and receipts in the first pocket, and my printed Next Action lists in the second pocket.

One of the things that really helps me work is that I've thought through my projects past their current next actions. I even keep those future actions recorded in the software, but I only print out the Next ones. This has the dual benefit of both helping me keep the project's goal in mind and making it easy to recall what comes next when I finish something while away from the computer.

I've deliberately neglected my specific software up until this point, because anything that has the ability to print out your lists (preferably onto separate sheets/cards per context) will work. I personally use SimpleGTD, which is a good free Web-based GTD implementation. I don't have any connection with its development, I just use it...