From the developer of WriteRoom - PlainText Dropbox text editing for iPad & iPhone -



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Simple, awesome, FREE. 

For editing text on iPad & iPhone. PlainText is a simple text editor with a paper-like user interface. Unlike the default Notes app, PlainText allows you to create and organize your documents in folders and sync everything with Dropbox.com. Requires iOS 3.0+

http://www.hogbaysoftware.com/products/plaintext