Just noticed the iPhone is not sorting folders in the same way as I'm seeing on-line.
I've added an underscore to the folders that I use in my Notes section. On the website when I do an alphabetical sort those folders fall to the bottom (as I want). On the iPhone those folders are sorted to the top.
Hoping Toodledo can "fix" this or suggest a non alphanumeric character I can use that will sort the same way on both platforms.