Ask TUAW: What's your favorite note-taking app?

This week's Ask TUAW is coming at you from TUAW reader Michael, who writes:

"I use my PowerBook to take notes in school with the notebook feature in Word 2004. I am getting very frustrated with the buggyness of Word and I am looking to drop MS Office entirely. NeoOffice is good enough to replace Word for term papers, but I have been unable to find anything that auto-creates bullited lists a-la word notebook. What do other people use for note-taking?"

I've personally been using OmniOutliner to take notes in class since all I need are bulleted outlines and a streamlined interface in which to create them. (However, OmniOutliner is certainly capable of so much more.) But what about you, TUAW? Who has some note-taking app advise for Michael?

Also, don't forget: Ask TUAW is a weekly post series which is fueled by TUAW readers just like you. (Yes, including you, in the pajamas.) Just submit a pressing question, problem or topic to our Tips form with the subject "Ask TUAW" and we'll post one question each week.