Noise Ninja or Noiseware, can take out excess noise when bumping ISO......There really isn't any way to remove motion blur or camera shake. I don't own your model camera but I suspect for any normal sized print you'll be just fine with the noise level, even without noise reduction.
Noiseware does a better job of removing noise without a lot of tuning. Noise Ninja can be better if you are willing to tune it a bit. If I am removing light noise I'll just pass it through the default settings in Noiseware. If I have a particularily difficult noise job to tackle I'll try fiddling with both and see which does the better job.
If you'd have been shooting at 1/500 and ISO 800 or 1600 I think your results would have been a lot better. The bottom line is don't be reluctant to push the ISO.
Remember, people weren't born knowing this stuff. I've ruined a lot of pictures learning exactly the lesson you learned here. Try some experimenting around the house with different settings. That way you'll be ready for your next graduation, or similar, shoot.