The game you're thinking of is Crayon Physics. A more developed and mainstream non-flash version is called Draw the Line. :)
I don't have any books to suggest but I downloaded this game for my daughter and we both enjoyed it. There's a free trial version too. ( edit: you don't need a tablet pc to play it - a mouse works just fine)
Several years ago I played Crayon Physics which seems really similar. If so, I can see why it would be popular; the puzzle drawing genre is challenging and lots of fun.
I always liked Crayon Physics. I played the free demo through a few times, then a friend bought me the full version for a birthday one year. Very fun game, almost elegant in its simplicity.
If you liked that game, you may also like Crayon Physics Deluxe: http://www.crayonphysics.com/
http://store.steampowered.com/app/26900/
I got lucky and bought it in a Humble Bundle for like five bucks. But I'm sure it will eventaully be on sale on Steam.
Chill, fun, relaxed. The music is fantastic, too. There are only three songs, but they're great. My favorite one is Lullaby, by _ghost.
okay if you google humble indie bundle, you'll find a website called http://www.humblebundle.com/ and then you see a link called Crayon Physics Deluxe and you'll find yourself on this page http://www.crayonphysics.com/