Thank you Astro!!
your solution worked for me too.
questions:
1)Do I have to TURN ON the Cached Mode for your current Outlook account after I do this?
2)Do I have to turn it off every time I want to sync the notes to my Iphone?
Thanks again,
Orna
1. Exit iTunes and leave Outlook open
2. In Notes, make sure that your Notes are in the first Notes Folder listed (iTunes will only look in the first Notes folder listed, to change the order of your Notes folders just right-click on the folder and choose Move Up or Down in List).
3. Turn off Cached Mode for your current Outlook account (refer to Microsoft Office Support for instructions:
http://office.microsoft.com/en-us/outlook/HP010223431033.aspx?pid=CH010045991033)
4. Exit (from the File menu, don't just "X" out) and re-start Outlook
5. Open iTunes and check the boxes for Sync Notes to Outlook and Replace on this iPhone (*This will delete all Notes on the iPhone and replace them with Notes from Outlook*).
6. Perform Sync.
My Notes are now synced with Outlook. I went back and turned Cached Mode back on in Outlook but I do not know if this will impact Notes sync in the future. I will cross that bridge when I get to it. Hope this helps!