I do any noise reduction in photoshop using "neat image".
Briefly comment on your experience with high ISO settings and how you handle noise; mention your camera model in your comments
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Sony R1 I am using Noise Ninja to deal mainly with chroma noise. Luminance noise does not bother me. I like some grain in pictures. I think only chroma noise should be filtered in-camera, it usually does not hurt fine details. Luminance noise reduction is more difficult without losing fine detail. Should be done using special NR SW on PC. The R1 doesn`t remove chroma noise in-camera. But that`s OK, I mainly shoot RAW.
I work with 1600 speeds and above on a regular basis and find that although still a bit grainy with the NR filter I don't really mind. At times in low light at a wedding when I don't want to use a flash I don't mind the added graininess at the risk of losing the shot or using a flash and disturbing the ambient light.
I use a Canon EOS 20D. I submit to microstock photography sites and use Noise Ninja to remove the noise at just the right amount. I sometimes even use noise reduction at ISO 400, especially if the available light wasn't enough when the photo was taken.
Recently,while shooting my grand sons comminion all of my outside shots were at ASA200 after entering the church i found I was not able to use my flash, by changing my ASA to 800 and 1000, I was able to get usable shots in doors under available light which i later enhance in Adobe Photo Elements. I am using a Nikon D-70 with a 18 to 70 for close shots and a 70 to 300 for shots at the alter from a distance. My cameras NR was in effect.
I shoot with a KM 7D, I shot my sons Marching Band competitions at night under stadium lights for the band yearbook. Used a Tokina AT-X 80-400 4.5-5.6 at f250 with an ISO of 3200 used in camera NR, and all keepers required the use of NR S/W during processing.
If working in color, I tend to use Noise Ninja to dramatically decrease the noise at higher ISO's, if the image is worth that much work. B/W images can benefit from the extra noise, so I don't always worry about trying to correct them. I shoot a Canon 20D and can typically shoot up to and including 800 ISO without any problems with excess noise.
Nikon D50. I use Noise Ninja Pro with Photoshop CS3 Extended. Shooting in the RAW format, I can get acceptable breaking news shots by setting the sensitivity to 1600 and the exposure compensation to minus three. Fine art photographers may need to take a Valium before trying this, but when the light is dim, when tripods and flashes are not options, and gallery quality prints are not needed, Noise Ninja and Photoshop work wonders.