To upload your music you need to pay for iTunes Match which is a different service from iCloud. The iCloud part of iTunes allows you to re-download or auto-downlaod purchases from the stores.
Check on your iPhone's Notes app for an "Accounts" button at the top. Only notes in the iCloud account will sync. If you have an "On the iPhone/Mac" account you will have to copy these notes to the iCloud account for them to sync.