Daylite 3.5 does not support note synchronization. Apple's standard synchronization system, which is used with Address Book, iCal, iTunes, iSync, and other applications, and enables the robust automatic synchronization in Daylite 3.5, does not have the ability to synchronize notes.

When Apple releases the capability of note synchronization, Daylite will be updated to support it. Contact Apple directly to request that they implement the ability to synchronize notes from desktop applications to devices like iPhone, especially in Mac OS X 10.5 Leopard.

If you want to synchronize notes, you will have to revert to Daylite 3.2.3, first by uninstalling Daylite 3.5 using the Daylite Uninstaller, and then restoring from a backup of your Daylite 3.2.3 database. Marketcircle plans to implement note synchronization when Apple adds built-in support for it.