No, I use a Mac - check my profile below each post (MBP = MacBook Pro). But, notice that my reply was directed to the original poster - Viking1055, who lists
Dell D63 Windows XP Pro in the profile. Thus, my answer was framed accordingly.
To answer
your question, yes, Notes are backed up as part of the backup process (you have found the location of the backups, ~\Library\Application Support\MobileSync\). The backup process captures data that is _not synced_ (contacts, calendar, etc.,
are synced, and thus, not backed up by the backup process). But, as I stated, they are database files; they can be parsed using a python script run from the Terminal, but, as mentioned, that sort of thing is beyond the casual user. You can check out
this blog for a few more details.