I finally was able to find a way to copy my "on my iphone" notes perfectly onto my "icloud" notes using gmail.
so you'll need a gmail account. But it is simple, works and quite fast
With help from sildani and his suggestions, I was able to locate my notes.mbox file (~/Library/Mail/V2/Mailboxes/Notes.mbox).
check it out here: https://discussions.apple.com/thread/4135315?answerId=19279505022#19279505022
To make sure I had everything off my phone, I used another computer running snow leopard to sync my newest notes off my phone with Mail, then extract the up2date notes.mbox folder.
However, I wasn't able to just drop the notes.mbox into notes as sildani suggests, that doesnt work (not for me anyway). What i did was import it into the native Mail app on my macbook pro (runing mountain lion). They all appear. Then, I created a new folder in Gmail and transfered them all into that folder on my Gmail (i have Gmail IMAPed to my Mail app). Once the transfer complete, I went onto gmail.com to access my email on the web. The "notes" folder in gmail is hidden on the Mail app, so you have to go on the browser to transfer them into your Gmail notes folder. transfer them
OK, so now they are all there. You can now go into settings/mail,contacts&calendars, select your gmail and choose to sync notes. Once you do, all the notes will appear in the notes app, with the proper dates and everything.
Finally, just select them all, and drag them into your iCloud notes. VOILA!!!
you can then delete them off your gmail and unsync if you like. Also, once they all get in sync with your phone, you can individually delete all of them off your "on my iphone" (NOT OFF iCLOUD!!) and then in settings/notes on your phone, set default acount to iCloud