Writing PowerShell scripts in notepad is a horrible thing. You always need to switch windows if you want to test your script or just want to test a single command. That's why they have created a nice Itegrated Scripting Environment or like simply an ISE for PowerShell.
An ISE is just a piece of software which makes it easy for you to write scripts. You can view your PowerShell scripts, insert commands and view the output all at the same window. Mostly it has some extra features and options, for example we can debug our scripts!
If you are using Windows 7 you will find a PowerShell ISE in your PowerShell Directory. Windows 7 has automatically installed version 2 of PowerShell for you, isn't that sweet!
In that directory (picture above) you will find your PowerShell Integrated Scripting Environment (ISE). If you click it, it will start the program and this is how it will look like:
As you can see the window has 3 main panels. 1 big output panel (top left), 1 commandline panel(bottom left) where you can insert and test your commands and the final panel (right) where you can write your scrips. You can open multiple scripts in a tabbed way.
As you can see, Microsoft will promote PowerShell by installing it on Windows 7. This means that there is some future for PowerShell!