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It depends on what functionality you need - handwriting, character formatting, hyperlinks or just plain text.
For handwritten notes PhatPad is the best, imho.
If you don't care about handwriting and formatting (ie you can live with plaintext notes) try Tombo - it has powerful search, outline-like tree view of notes, desktop counterpart and allows powerful encryption (and better else, its notes are plain text and can be used in pretty much any application). It's freeware.
Another one to try is ADB Idea Library, also freeware. It allows linking other files to notes. Hasn't been developed in quite a while but still pretty useful.
I am not a big fan of PhatNotes but then some people love it.
Good luck !
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