I've been using SmartNote. I have multiple "notebooks" for work, personal, charity, etc.
I find it easy to use and can easily switch between text/typing mode, and use of finger/stylus mode. I cannot remember if it was free or not. It was one of the first apps I have tried, liked, and stuck with.
I also have Evernote, Notes Plus, PaperDesk, and Moleskin. I may have to revisit these apps to see if any of them have improved since I first tried them out.
What I would REALLY love to find is a great Contact Management app. One that doesn't integrate with Contacts since I would ONLY want business related people in the app.