I have downloaded also your provided direct link for your pic and this time I can inspect the EXIF.
As for the K10D at ISO 1600, I would say nothing was wrong and this *is* *normal*. Do note that noise are usually more a problem at shadow areas and that's the case of your sample.
It's actually a problem of 10MP+ DSLRs with a small sized CCD/CMOS of APS-C. That's physics for the physical limitation. Unless there is some kinds of technology breakthrough, I can't see the high ISO pictures of those DSLRs can be better, frankly speaking.
I notice that you have the latest firmware version 1.20 installed too. So, this would be the best result you can get already with the in-camera jpeg when you shoot under such severe condition.
Originally posted by RiceHigh Why there are no EXIF info for the edited original photo?
p.s. Your attached image is too large to fit in the post box! Why not just post the link - we can download the pic if like. :-)