[sky_kats]

I am submitting several images for a gallery contest and have lower resolution scans of my negatives. I went and had high res scans made at about 3000dpi but they look terrible. The high res scans have lots of noise in them. Here is a screenshot at 100% of the high resolution scan: http://i26.tinypic.com/2133h5k.jpg .

The final output needs to be around 5x7 inches at 300dpi on a CD. Right now this image is 37x25" and 96dpi.

How can I fix these images, keeping them somewhat sharp and retaining the detail but eliminating the grain (reducing the size is okay)? Also, when would I upsample the images to 300dpi (when I start editing or at the end?)

I have to finish this tonight so I look forward to your help!
I have photoshop CS3, no plug-ins but will use them if they are free or free trial.
Before posting I had tried simply resizing and still had a grainy image : http://i31.tinypic.com/260wwvr.jpg . With resizing it as Steve P said (above) then using a small Gaussian Blur and unsharp mask, this is what I came up with: http://i25.tinypic.com/3539h54.jpg A little blurred and you can see a tiny bit of grain. Will keep trying, thanks!