Ok i've tried quite a few note taking apps, some free some not. Personally the pick of the bunch from typing is either the native Notes or IDo Senior, lots of functions and abilities with fast reflex action so you're never going faster than the screen.
For hand writing it has to be Notes Plus although my writing looks better in Penultimate, the "palm pad" screen protection in Notes Plus is a must have (take note Cocoa Box lol)

Sent from my jb iPad 2 using iPF

I like the free bambo paper. Which you can also get a styles for. Which I do not have and it works fine without.

Sent from my iPad2 using iPF

Used Penultimate, Ghost Writer, Notes Plus, Pages, Springpad and the iPads native app and I am happiest with Notes Plus.

If you are going to take notes with a keyboard, I would recommend Pages but the native app works pretty good as well.

For handwriting, the Notes Plus app is tops. Cut / copy text into the note and write or draw around it... it is easy, makes your handwriting look sharp because of the zoom feature and doesn't cause a single meeting to cover tons of pages.

Its inking is not as smooth as Penultimate, but it's file system and sharing options are better... plus the ability to add text by typing it or cutting and pasting it.