Adobe Photoshop CS and Elements 3 - Analysis of Crops Out of the Red Channel
Below is a more detailed noise analysis of the image used in my review at dpreview.com.
The results of this test are identical for Photoshop Elements 3 and Photoshop CS. This is a limited test on the red channel of a Nikon Coolpix 5000 image. Different camera brands and models may lead to different results.

Opening the Nikon *.NEF RAW file with Photoshop CS or Nikon Capture 4.1 results in different noise and grain patterns, even with noise reduction OFF in both programs. Photoshop CS results in fine film-like grain that is more visible, while Nikon Capture 4.1 produces a coarser but smoother grain.

Photoshop CS produces a better overall noise reduction, but introduces waves in uniform surfaces such as skies, common to many automated noise reduction methods. The remaining grain can be reduced by the luminance smoothing slider, but it should be used with caution, so as not to introduce "water paint" effects.
Nikon Capture 4.1 reduces noise less aggressively but introduces no waves. Too much noise reduction will also lead to "water paint" effects.

When using the manual 123di noise removal method on image A, the Photoshop CS film-like grain remains present (but when looking at the RGB image the color noise is removed). When removing the noise from image B, the sky is free of noise and grain, resulting in a very smooth sky. Image F is the best result, followed by E. Of course E and F require more time.
 
A. Opened with
Photoshop CS
without any noise removal.
B. Opened with
Nikon Capture 4.1
without any noise removal.
C. Opened and
noise removal with
Photoshop CS.
D. Opened and
noise removal with
Nikon Capture 4.1
E. Opened with
Photoshop CS and with
123di noise removal.
F. Opened with
Nikon Capture 4.1 and with
123di noise removal.
Click here to
view A->C->E.
Click here to
view B->D->F.
"The 123 of digital imaging Interactive Learning Suite" features unique noise removal methods. Click here for more info.