Okay, so after playing around with lightroom 4, this is what I have.

Note the squiggly lines (grain?), what did I do to cause this?

noise reduction and sharpening

K, thanks.

Can you give us the settings of the shot so we know weather the noise came from the camera or your editing?

Noise reduction can reduce that appearance but if you lay it on to heavy then your shot will become soft and blurry. At the same time, oversharpening can increase the noise visible in a photo.

Info on the shot:

Camera: Nikon D70s
Lens: Sigma 55-200mm (shot @150)
Aperture: f/18
ISO: 200
Shutter Speed: 1/160th
I used fill flash, if that matters at all.

I dont think I see any noise. The picture looks over sharpened to me. How did you process it? (Sharpness settings, compression, etc).

After I looked at what I did, I definitely over-sharpened it. Fixed it easily, thanks guys.