Having now upgraded to an iPhone 4, I thought I'd give this another shot using background services. It was, in fact, running as a background app was ON in Location Services under Settings, but NOT ONCE did it alert me when I tested it and another similar app. I realize the app has not been updated to take advantage of iOS4 features, but that's been out for awhile now. I have to assume that the dev is no longer supporting it, and I found nothing on their website to contradict that assumption - actually, it appears that they've stopped doing anything since January 2010.
I too have disappearing data and crashes EVERY TIME I try to save notes. It's useless until these get fixed.
Assuming it eventually becomes stable, I would like to be able to look up a location on a map, rather than just by address - for those times when I don't have an exact address.