How to process raw images in Photoshop Elements: steps 13-14
13 Remove the noise
Clear areas such as skies can reveal picture noise. Pop the Noise Reduction Luminance slider up to 10 to soften it. Note, however, that you should always use this slider with caution because it can also soften other details. Colour noise is safer to reduce: set Color to 44.
14 Save and open
Click the Basic tab. If you click Done, you'll save the raw file with all the changes you've made placed in a 'sidecar' file. However, if you look at the sky at 100% you'll notice a few sensor spots. Click Open Image to open the photo in the standard Photoshop Elements editor.