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Mark,
I think when you tried softening the noise, you also obliterated the nebula, too.
There are many ways of performing selections. Once you get adept with Photoshop, all the other methods become clearer. This is one of the simplest. Draw a circle around the nebula, press Ctrl+Shift+I to invert the selection; right-click and select Feather and enter a value of say, about 10-20. Then, apply your noise reduction. Once done, press Ctrl+D to deselect.
Regards,
Humayun
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