Hi, Don!
If you haven't gotten acquainted with DPreview.com's website yet -- I encourage you to do so -- there is a full review of your current camera
http://www.dpreview.com/reviews/canons50/ as well as forums for owners/interested folks of most digital camera makes (Canon has a large forum for P&Shooters and separate forums for those using Canon DSlrs.
Some of the basics about noise are
1. the higher the ISO speed, the more likely that you will notice noise.
2. the less light available on the subject area, the more likely you will notice noise. [the LESS light available, the MORE likely that you will have to increase your ISO speed OR use flash] ISO speed is dependent upon the amount of light available to shoot the photo.
3. the smaller the digital sensor in your camera, the more noise it will create while creating digital images (point/shoot cameras have more tendency for noise than large-sensor DSlr camreras -- it's the law.

4. noise reduction software was created because a lot of folks didn't want to look at so much noise
5. noise isn't the worst thing that can happen to your photo (noise reduction inside some camera models can make photo details look mushy and like a water-color picture -- more people are shooting raw format so that they can decide how much noise reduction to use instead of letting their cameras make that decision.)
6. there are different types of noise -- luminance and color -- and one may bother you more than the other
According to the DPreview review of the S50, it showed "low noise" at ISO 50 -- but this was several years ago, and compared to current cameras, I think you will find that it is noisier than a Fuji 30 at ISO 50 or 100 or even higher. But still, with this current camera, you will avoid noise more if you only use ISO 50 or 100, shoot in daylight or with flash and ensure that you have plenty of light on your subject -- which will better allow you to use the slower 50 ISO. Then if you are bothered by any noise you see -- use a noise reduction program. There are free ones for download, and others that cost some bucks. I use Noiseware by Imagenomic (
http://www.imagenomic.com/ ). Others I have used, and that are mentioned elsewhere on RetouchPro and DPreview are Neat Image and Noise Ninja. Try some free downloads before you decide whether to buy one over another or to use a free version.
I shot with an Olympus C2100UZ from 2001 until last month -- it was only a 2megapixel camera, and usually did fine in daylight shoots. There was color noise evident when I didn't have enough light or shot higher ISO, but most of the time, there wasn't enough to bother the photo.
When we were shooting film cameras, higher ISO meant grainier photos -- high speed films were generally only used by photo-journalists who took photos of accidents, crime scenes, etc. in low light for newspapers. The newspaper photos were low quality and mostly black/white at that time, and no one expected to see sharp, well-defined images in a newspaper. Photographers who shot for pay often used ISO 64 slide film or 100 speed at the highest. There was much ado when someone used 400 speed for anything professional. Now a new generation of folks who have never shot film are shooting ISO 1600 and arguing about which cameras have the cleanest images.
If you want to get a newer camera which doesn't show as much noise, you can read DPreview's reviews on point/shoot cameras (Canon and Fuji currently have the lowest noise, among a few others). You do not have to buy an expensive SLR camera (as some will say on the forums at DPreview), but if you had reason and money to do so, there would be very little noise evident at ISOs up to 800 or above -- depending on the camera you chose.