actually, we had the same camera (still have it actually, the 400d xti is my first one)
I encountered noise with it too -- You just have to work around it a little bit -
that cam doesn't really compare to anything you can get nowadays, so dont feel bad
the way id work around the noise is make my pics more moody so it has a polaroid effect to it.
offsetting the image slightly also helps tons, and actually -
i was well within my ability to remove the grain - i just kept it around the head to give off that heat-wrapping on the face effect