The DNG solution is a decent workaround, though at the cost of an additional step (for those who don't make this conversion in their normal workflow.)
Let me point out, though, that the newest version of the Camera Raw and Lightroom processing engine is significantly better than the old one. I had this point driven home to me last night, when I processed a raw photo from my GF1 shot at ISO 800. I have Photoshop CS4 on my computer at home, as well as Lightroom 3. Note that CS4 uses the older Camera Raw, while LR3 is up to date.
So without thinking, in a hurry, I just opened the file into ACR, rather than waiting to import into Lightroom. Made some small adjustments, opened the file into Photoshop, and -- what's this? The noise levels in the shadow areas are AWFUL. Terrible. Not what I have ever seen from this camera. Unusable. So I imported the shoot into Lightroom, and noticed that the Calibration tab had Process 2003. Changed that to Process 2010 and suddenly everything was wonderful again. Much smoother noise pattern in the shadows. Much happier photographer.
So yeah, getting the latest Photoshop or Lightroom would be a step up. Something to think about. I'm starting to really like Lightroom (after ten years of Photo Mechanic and ACR at work....)