There's a fantastic iPhone App called IMExchange for syncing notes OTA from Outlook to your iPhone. You can check it out by Googling Rerlsoft or IMExchange.
I was able to download it, then it mysteriously disappeared from iTunes. I contacted the developer and got this reply yesterday "Shortly after the release of OS 3.0 an incompatibility came to light when syncing with Exchange 2003 and tasks previously created by Windows Mobile. The problem caused the app to crash when syncing these tasks. Because of this I decided to pull the App from the store until the update is approved by Apple, which should be in about 2 weeks."
This is a great solution for me since Exchange won't sync Notes OTA. I get my contacts and calendar via Exchange and notes via IMExchange. Hopefully, it will be back to iTunes in a couple weeks.