I have been wrestling for some time with trying to control noise that shows up in my shots that include bright blue sky. Granted, I'm working with a compact camera and its sensor limitations: Panasonic FZ7. I've pretty much ruled out processing errors---the noise is there in the original image. RAW is not an option for the Panny. But the solutions suggested to me all come at a fairly high cost in sharpness or contrast. I guess it's a balancing act. Here's a recent shot where I tried using a different interpolation routine for resizing for posting. I would be interested in what people think about the noise vs detail balance.