With earlier cameras, like the D1X and D100, the main concern was not blowing highlights. With the D2 generation, especially if you shoot RAW it is better to overexpose and pull back for highlights than to underexpose and have to boost the shadows and along with it the noise.
Get your exposure so it shows up in the 4th quadrant of the histogram is very important. I no longer have a D2h but I have found with the D2X that I get better image quality with the D2X in low light using H1 (ISO 1600) and camera noise reduction for high ISO set to HIGH than I do at ISO 800 without the high ISO NR.
I prefer Noise Ninja for processing images with noise but there is a severe penalty in terms of image quality that is almost linear. Reduce noise 20% and I find there is a 20% loss of image sharpness or contrast or both.
I limit any EV boost in Photoshop to .5 EV when processing Nikon files. With Canon files (Mark II or 5D) I limit it to a 1.5EV bump. Using fill light with CS3 and ACR 4.1 is a big advancement in this regard and alone worth the cost of the upgrade if you are shooting with Nikons.
Bruce