If you're one of the many waiting for Apple to get its act together and offer a copy/paste feature on the iPhone, there's a promising development called MagicPad from software creator Proximi. It's an application similar to the notes tool that ships with the iPhone. The big difference is that it's got support for multiple fonts; rich text elements like underlining, italics, and strikethroughs; and the much-wanted copy/paste.
It manages to do all this by adding a small toolbar over the iPhone's onscreen keyboard. Using the small loop magnifier you can highlight strings of text, then copy them into a virtual clipboard. From there it can be pasted into other notes, then sent off. Unfortunately you can't carry the clipboard to other applications, which is what most people are hoping Apple will provide.
Posted after the break is a video of the yet-to-be-released application in action, which was made by AppleiPhoneNotes.com. One thing that might keep MagicPad from making it onto the device is if it does not meet Apple's stringent human interface guidelines, which protect things like the keyboard configuration to keep the end user from getting confused.
First Look - MagicPad from Apple iPhone Apps on Vimeo.