Well I don't know that it matters, but I tried again today after updating to iphone firmware 2.2 and I can edit notes again. Maybe the phone just needed a reboot. I don't know. Either way, my issue of not being able to edit any notes seems to have gone away. Thanks!
I just recently started having this problem. I used to be able to edit all of my notes on the iPhone. Now even the ones I create on the iPhone and go back into say that they can not be edited on the iPhone because it has images, audio or styled text. I know that's not correct since I JUST made the note on the iPhone. I guess for now I'll use the built in "Notes" app on the iPhone till this is fixed or a solution is found.