I saw a post on the WOTC forum about using scraps of paper hung on the DM screen to track initiative. I tried it last session and it worked pretty well. I had the players scribble down their names and their character names and defenses. When we rolled initiative, I arranged the scraps from my left to right, in descending order of initiative.
It was very handy, so much so that I felt a .pdf was in order!
Attached to this post is a .pdf with 5 hanging initiative tracking cards. Print ’em out, have the players fill ’em out and fold ’em at the dotted line.
EDIT: Per JesterOC’s suggestion, I’ve moved the name box on the players side down, to make room for condition markers. The .pdf file below has been updated.
Hanging Character Initiative Card (char-init-card.pdf)