QUOTE(leyley @ Dec 10 2009, 11:22 PM)
I'd prefer lower noise level even the quality is lower a bit.
That depends on a lot of things. First in order to achieve a noise-free image or a low noise image, we need to perform noise filtering and AA. We know for a fact that image sensors (especially 4/3 ones at this development stage) is noisy depending on its design. The problem is noise filtering reduces detail. So the strategy is to either implement a strong filter at the expense of reduced detail and softness or a weak filter for preserving more detail and sharpness.
I prefer to see more detail and have higher quality at the expense of some noise. Why? Because you can't see it on a normal picture or when you print it out even at large sizes. You will only see it when you view it 1:1 or pixel peep which is pointless in my opinion.
QUOTE(Hico @ Dec 10 2009, 11:30 PM)
is the noise filtering can be adjusted so that it can produce sharper image?
I have heard of people disabling the noise filtering totally in order to enjoy more details. Your suggestion is quite accurate in the sense that using a weaker noise filtering setting reduces the blurring as a result of filtering itself (but at the expense of more noise). However, Wrotniak's articles have mentioned that you cannot totally switch off noise filtering although you choose the OFF setting. Some degree of filtering is performed. Unless you shoot RAW to avoid noise filtering and gradation settings. Don't use Olympus Master to develop the RAW but use ACR to do it. Then use your favorite noise filtering software like Imagenomic or Noise Ninja to do the job. You'll get better results. Of course... that depends on the level of commitment you're willing to give just to have good photos.
Also we know for a fact that the Gradation settings for JPEG causes more noise even on low ISO. Select Normal Gradation instead of Auto because Auto will bring out more shadow noise. And you cannot totally disable it because you can't.