raw processing????

Hi,
I'm alittle new at this ,so,please be patient...
I'm shooting a raw image..process it threw canon file utility,adjusting color,contrast,exposure etc...
save the file as a 16 bit tiff...then open it in photoshop to sharpen.
In unsharp mask,my settings are
amount=400
radius=1
threshold=5

My in camera parameter settings are Parameter 1.
My problem is that the images are all pixelated,seem to be oversharpened.
Am I correct in azuming,that being that my in camera settings are +1,that the images are already sharpened.and that my unsharp mask settings should be lowered?
I'm using a Canon 300D.
Any help woud be appreciated.
TNX,
Mike