Code review

Quickly looked over the code.

43       $blocks['subject'] = t('Notes for User <span id="user-name">') . $user->name . t('</span>');

Use placeholders for dynamics. You can use the %placeholder and it will automatically be highlighed, so you don't need that custom span. Like this:

 t('Notes for User %name', array('%name' => $user->name));

  56   $items['note-Add'] = array(
  57     'title' => "Add a Personal Note",
  58     'type' => MENU_NORMAL_ITEM,
  59     'menu_name' => 'primary-links',
  60     'page callback' => 'personal_notes_note_add',
  61     'access arguments' => array('add a note'),
  62   );

Mixing case in URL's is very uncommon, using - too, what about using note/add instead? Also, I don't think you should add it to the primary-links menu, the site owner can always do that himself if he wants to.

  88 /**
  89  * Add a Personal Note page.
  90  * This creates the form for adding a personal note.
  91  *
  92  * @return
  93  *  Form HTML.
  94  */
  95 function personal_notes_note_add() {
  96   return drupal_get_form('personal_notes_note_add_note');
  97 }

This is not necessary, instead, simply use 'drupal_get_form' as the page callback in your menu item and 'personal_notes_note_add_note as the first page argument.

 149   drupal_set_message(t("Your new note <b>$title</b> has been created."));

Same here, you need to use placeholders to make it actually translatable and avoid XSS issues.

 211       $msgbfr .= sprintf("<br />deleting note <b>%s</b> by user %d created on %d\n",
 212                        $fields[title], $user->uid, $element);

And here you should use t() too

 231   $query = "SELECT title, note, created FROM {personal_notes_notes} WHERE uid=%d
 232     ORDER BY created LIMIT %d;";
 233   $results = db_query($query, $user->uid, $num_items);

Use db_query_range() instead for limiting the results, directly using LIMIT isn't portable (does not work on PostgreSQL like this)

<div class="personal_notes">
   2   <div class="title"><?php print $title ?></div>
   3   <div class="note"><?php print $note ?></div>
   4   <hr class="sep">
   5 </div>

You need to protect against XSS with check_plain(), either here or when you before passing it to the theme function (But always only before displaying, not before saving).

 ;$Id: Personal Notes,v 1.0 2011/04/29 marty $

Not necessary anymore, git doesn't use that. Just remove it.