I reviewed an app back in January 2010 (http://www.iphonelife.com/blog/3963/awesome-note) called Awesome Note.
I still love the app. I use it everyday and have recommended it to many of my friends and family.
They have recently added some really cool features. I'm going to include all the screen shots from their website for those of you who are not familiar with it. It's easier to see it, than explain it.