Hi,
To provide a really useful answer I'd need to take a look at the two images you're trying to combine. Could you please upload them in raw form (or in the format and conditions you're using them with HDRComposition)?
I may be wrong, but this case looks perhaps similar to a previous one, at least from what you're describing:
http://pixinsight.com/forum/index.php?topic=2466.0Besides the applicability of HDR composition to your images, I detect a conceptual error in your post:
noise in general does not seem to be improved with the HDR image looking almost exactly like the ISO800 image. I am perplexed that doubling the data has not increased the SNR - ie made a smoother image with more detail.
HDR compositions, in general, don't improve the signal-to-noise ratio in the combined images with respect to the individual frames. When you perform an HDR composition of two or more images you are not adding or averaging data; you are actually
replacing saturated pixels or nearly-saturated data with scaled nonsaturated data. Actually, it is not uncommon that the general SNR worsens with respect to the longer exposures, since after all, they are being replaced partially with shorter exposures. Dynamic range and signal-to-noise ratio are two unrelated concepts.