If you want to create a report which shows all the notes people have entered against their project, you must run the report which shows the detail for each employee and task, i.e. the Employee Time & Cost Per Task report.
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Select this report, and then change Time Grouping to None. This will ensure that the rows are not grouped, and makes it possible to view the notes for each individual task on each line.
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Lastly, tick the field Timesheet Notes. Please note this field will only appear if the Time Grouping has been set to None, otherwise it does not show.