1. A device having a plurality of elements, including logic elements, wherein the elements are configured to perform the following operations: accessing a plurality of pixel values corresponding to a matrix of pixels representing a portion of a mosaic image, wherein each pixel in the matrix of pixels has a corresponding pixel value that represents an intensity value for one of several predetermined colors, and wherein the matrix of pixels comprises a demosaiced central pixel having a sensed pixel value for one of the several colors and one or more derived pixel values for the other of the several colors; deriving an actual luminance value for the central pixel; deriving an actual chroma value for the central pixel based at least in part upon the sensed pixel value and the actual luminance value; generating a plurality of luminance values for the matrix of pixels which includes a luminance value for at least most of the pixels in the matrix of pixels; applying one or more filters to the plurality of pixel values to derive a filtered pixel value for the central pixel; applying the same one or more filters to the plurality of luminance values to derive a filtered luminance value; deriving a de-noised chroma value for the central pixel based at least in part upon the filtered pixel value and the filtered luminance value; deriving a final chroma value for the central pixel based at least in part upon the actual chroma value and the de-noised chroma value; and deriving a de-noised pixel value for the central pixel based at least in part upon the final chroma value and the actual luminance value.