Before the release of iOS 4.2, you may have been disappointed with the default font used in the iPhone's "Notes" app.
iOS 4.2 allows you to choose between three different fonts.
If you like using other fonts families, BOLD, ITALIC, underlines, strike-outs AND COLOR in your iPhone Notes, you can.
I have tested this with MobileMe, but not with plain old iTunes syncing.
Mac OS X Hints
http://hints.macworld.com/article.php?story=20101124223757191