Ummmm... Ok, I just realized that the ISO was set to 80, would this cause a non-moving subject to become grainy?
Help this young grasshopper 
Mike set your ISO to 200 and try again.
With ISO the lower the number the higher the quality, so I'm not sure where you are getting your grain from.
Set it to Superfine also.
Also make sure you are Optical zooming, not Digital zooming. Turn off your Digital Zoom if you can, never turn it on again. You get the same result from croping part of an image in photoeditor.
