It has a lot of missing and incomplete functionality and has certainly many bugs. It is only tested on chrome.
The site clippingnote.com, which later was renamed to cutnote.com, provided the same functionality as google notebook. A few months ago both sites dissapeared, I was able to reconstruct the back end, reusing to some extent the front end.
There is room for improvement, for instance:
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replacing the WYSIWYG editor kindeditor (http://www.kindsoft.net/) for http://ckeditor.com/, http://www.tinymce.com/, http://imperavi.com/redactor, https://github.com/bergie/hallo, etc.
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http://simperium.com for storing the notes versions.
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http://filepicker.io for uploads and cloud storage integration (dropbox, google drive, box.net, webdav, etc.)
Create a Mysql database and upload scheme.sql
edit include/config.php
use demo/demo as your login/password or login with you google account