What in your opinion is a better way to test an applicant - have them write pseudo code on the whiteboard, or write specific code on the computer using Visual Studio?
In both cases questions concern manipulating some data structures. I know by myself that whiteboard can be more nerve wracking but could be good to see how the person acts under pressure.
It really depends on the applicant and the position they are applying for. If it is entry level, I'd say pseudo code on the board, that way you can test their logical thinking and not get caught up on language/framework specifics.
If you are looking for someone who is seasoned in a specific language, I'd probably vote for coding in their IDE of choice for that language. I'd also of course ask language specific questions.
I'm not too sure why you'd be very interested in seeing how someone codes under pressure. There are always of course deadlines and critical issues that can cause pressure, but unless your environment is always under pressure I'd question why you are really interested in that aspect.
I'd probably even go out on a limb and ask the applicant their preference on white board vs. IDE and have the exercise available in both formats.