You've got it right, Bob!


Quote Originally Posted by bob williams
2. Use of high ISO in the wrong situation can result in noise---

Yes, if the high ISO causes you to reduce exposure, it will result in more noise.


Quote Originally Posted by bob williams
Faster shutter for motion control, narrow aperture for DOF etc ---and I set ISO on lowest possible for the shooting situation----What is the error with my method of set-up.

That's fine, as long as you aren't "wasting" headroom. Low ISO gives you highlight headroom. If you don't need the highlight headroom, the best thing is to increase exposure. If you can't increase exposure, increase ISO. That is the essense of "ETTR then ITTR".