Hmm… most of the responses so far were non-responsive.
While I agree, RAW gives greater control with regard to shadow and
highlight control, I don't find RAW images clean.
Canon have produced execellent in-camera noise reduction algorithms
that are hard to redo in post processing.
Part of the issue is that Canon's noise reduction relies quite a bit on blocking up the shadows. Noise is heaviest in shadows, and by taking them to (nearly) black the in-camera JPEG conversion has an easier job of keeping noise under control.
If you want to preserve the shadow detail, you'll necessarily have a more difficult time dealing with noise.
If preserving shadows isn't a priority in a particular picture, bring the "black level" up to reduce the overall "dynamic range" and scuttle most of the noise. On DPP, drag the left edge of the Raw histogram over toward the right.
I don't think DPP actually performs the same noise reduction
algorithm either.
No, it doesn't. But Raw Image Task in ZoomBrowser EX (ImageBrowser on a Mac) does. Alas, you won't get the control over shadows and highlights. Funny, that…
So, if you shoot RAW, how do you go about getting the same in-built
camera reduction?
A third-party tool like NeatImage, Noise Ninja, or NoiseWare is almost a necessity if you've got a noise problem. I don't recommend using these tools in a "full auto" mode on the entire image, though. Learn to use the tool's adjustments, and to apply noise reduction selectively.
Also, keep in mind that noise looks far worse when pixel-peeping than it will in a print or on a Web page. Don't try to completely eliminate the noise, just get it down to where it's not a problem in whatever output medium you're working with.
And, of course, be more aggressive against chroma noise than luma noise. Luma noise is generally more acceptable (it looks a bit like film grain) and removing it is particularly damaging to the details in your photo. Besides, a little luma noise adds an illusion of sharpness to images.