I think I have the ISO up to 800 since it is pretty dark outside,
8mp
p quality - fine
rec mode - normal
color - real
saturation, contrast, sharpness - normal
shutter speed - 1600
without stock flash
With stock flash
I know the grainyness is probably just caused by the lack of light but I know i've seen pictures taken at night look way better than this!!!
What camera are you using? Is it a point & shoot style digital or is it a Digital SLR?
The sensor in a point & shoot style camera is very small. Small sensors do not perform well at higher ISO settings. You end up with noise...like you have here.
Try setting the ISO to 400 or even 100...and use a tripod with a remote release (or self timer).
You could also try running it through a noise reduction program like Neat Image or Noise Ninja.
ISO 800 is your problem. I can't see a reason for 1/1600 shutter at night. Were you trying to freeze a race car at 200mph? Try it at 200 or 400 and see (if your camera has those ISOs) You can hand hold at the reciprocal of your focal length, so keep that in mind. If it's a point and shoot, try to stay above 1/60 or so, or use a tripod.