I use Large/Superfine for image quality. I have used image stabilization on and off. I think since it is done via software, the stabilization could add grainyness to the photos. Try without it for a bit.
Posted from my CrackBerry at wapforums.crackberry.com
I'll just reply here so I don't start a thread already made. I have mine on the same exact settings & see noise sometimes on certain things. In the sun it's amazing. In the dark it's OK. Most phones have that issue though. I figured LARGE image size would help when it's shrunk down on websites or printed out pictures. It still takes great pictures in my opinion.