Scott,
Dan brings up some valid points. Calibration frames are a must. However, aside from that, drizzle can be very useful if employed while processing. Personally, I don't necessarily think drizzle is needed increase the size of the final image in this particular case however it can still be very useful while processing.
One more thing I should mention, I think you needed to be more aggressive when employing dithering since the walking noise is still evident in your image. What image capture software are you using? Do you know where to adjust the aggressiveness of your dithering?
Drizzle and dither go hand in hand. The other thing you must consider (which Dan mentioned), is drizzle creates a lot of extra files but if you have the space-time (get it, hehehe) go for it. Like I said before, drizzle only works if your dithering. In this particular case I don't think the dithering was setup up aggressively enough but I am still curious to see what will be revealed when it's employed while you process your data. Every single process will take that much longer because the file will be larger so don't think there is something wrong with your computer when you are working on drizzled files.
A good use for drizzle is to use while processing. Drizzle will allow you to increase the size of the image while you're working on it allowing you to get a good look at it the fine detail, then when your done processing it you can resample it back down to normal size.
Let's see what you get when you stack this with DSS. Don't forget to drizzle and fashizzle the nizzle.
-Lou