I can see a grid pattern when viewing the image at 100%, but it disappears when I turn sharpening off. 112 is an extremely high value, and masking is set to 0, which means that every little detail is sharpened.
Masking prevents flat areas (like the sky) from sharpening. Press the Option key while dragging the slider to see the effect. Black areas are protected, white areas are sharpened.
Always view the image at 100% when working with sharpening, noise, and other image detail.
This is the only view that shows you a true representation of the image – one image pixel is displayed using one screen pixel. Any other view will be inaccurate and misleading because the image has been scaled.
The image is very grainy, which is to be expected with a high resolution scan from a 35mm negative. But the grain is also extremely sharp, even when setting sharpening to 0.
I suspect that you are scanning with sharpening enabled in the Flex Color scanning software, which I don't recommend. I have an Imacon Flextight Precision II, and I always scan without sharpening.
For 35mm scans, I hardly use any sharpening at all at any stage, it usually makes the image look worse.
If I do decide to sharpen, I do it in LrC, or possibly Topaz Sharpen AI.
How large are you printing this image?
I would rescan the image with no sharpening, and then downsize (a copy of) the image to the required dimensions in Photoshop. The noise/grain will now be much easier to handle (try Luminance noise reduction), and you might even be able to apply some careful sharpening (use the Masking slider).
As a starting point, try Sharpening 40, Radius 0.5, Detail 25, Masking 50.
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