[Toadling]

I think this is a known issue and a limitation of the iPhone platform. The iPhone can only save as plain text, so a rich text note will lose its formatting if saved on the iPhone. Note, however, that if you only view the note on the iPhone and don't actually commit any changes, the rich text formatting is preserved and will still appear in the Mac version. At least this is how Ken Case explained it to me when I asked him at WWDC last year.

-Dennis