Just a quick post on what Wavelets do and how you can use them.
You can think of wavelet manipulation like having a graphic equalizer for images. Just like a graphic equalizer lets you modify or isolate specific frequency bands in a song (boost/cut bass, treble, etc.), Wavelets let you do the same thing with images (and more).
http://www.americanmusical.com/ItemI...rge/p32075.jpg
You can think of the larger scale structures (for example spiral arms) in your images as the bass (e.g. the lowest frequency band). You can think of small scale structures (small stars, single pixel blips and noise) as the treble (e.g. the highest frequency band).
If you have a song with a great bassline but you can't hear it very well because it's very faint, you could turn up the lower frequency band a bit.
Similarly, if you have a great image of a galaxy, but you can barely make out the spiral arms, you could turn up the largest wavelet scale a bit.
Wavelets in image processing can be useful for a lot of things, but they can be somewhat of a crude tool. They don't really solve or correspond to a real world problem (e.g. a problem that was caused by your rig, skills or imaging conditions). Just like a graphic equalizer will never allow you to 'boost all violins' or 'cut all backing vocals', wavelets will never allow you to 'boost all galaxies' or 'cut all stars'. There will always be unintended consequences.
Another problem is that, because Wavelets operate on the whole image, boosting one frequency band in your image can totally overpower another, actually making your image worse in some places.
If you combine wavelets with a mask, however, you may get a bit more mileage out them. This way you can manipulate only those places in your image that you think can benefit from using a wavelet operator.
The upcoming 1.2 version of ST will have a revamped wavelet module that is a bit more intelligent with what is being boosted, only boosting a pixel if it actually results in better detail.
Hope this helps at all!
Cheers,