Mary Schillinger asked me if I knew of a better application than the standard "Notes" on the iPad. A few minutes later she showed me Notability. This is a $.99 app from the App Store with 686 responders giving it a 4.5 of 5 rating.
I used the application recently at an all day meeting. I was able to take notes freestyle with my finger, type, highlight, add sound, and pictures to the notes I was taking.
Plus: Yellow Pad on steroids. Flexible application with helpful management tools.
Minus: File management is not that intuitive and it is hard to make changes to the structure you create.
I agree with the 4.5 rating and recomend this app.