Do you use any specific profile/s in Lightroom 3 with the M8? What is so much better in LR 3 compared to previous versions particularly for ISO 1250?
When you open an image in LR3 in development mode, that was already imported with a previous version of LR, then you are asked if you want to upgrade to the new "2010 process" for that specific photo. My personal observation is, that especially the M8 files look better in details and grain is less visible with the new LR process. Then they improved the noise engine in LR3.
When I work over older M8 files I think some of the ISO1250 files now look good while I thought they were almost unusable back with LR2.
Here comes the disclaimer. I did no scientific test. Just a personal observation that may be spoiled by the fact that I do film development in the meantime and maybe I am not so critical regarding noise now.
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I use three profiles: Adobe Standard, Camera Standard and the profile from the user Double Negative in this thread
http://www.rangefinderforum.com/forums/showthread.php?t=84524. Each one has it's strengths in different lighting and color situations.
The last weeks I did some work on my old M8 files with more knowledge, LR3 and different profiles. Over a year ago I sold my M8 because there were so many photos that were just ok and work with the colors was difficult, not to speak about the noise. If I had the knowledge and tools back then I would have kept the camera. So yesterday I bought a used one again. Thank god it's christmas and I had to buy some present for me
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BTW the market is full of M8 at a reasonable price. It costs less now compared to what I got a year ago.