This paper demonstrates results of wavelet-based restoration for scenes with pixel-scale features and various degrees of smoothness. The model of choice is the so-called C/D/C system model that represents the image acquisition process by accounting for system blur, for the effects of aliasing, and for additive noise. Wavelet domain modeling discretizes both the image acquisition kernel and the representations of scenes and images. In this way the image restoration problem is formulated as a discrete least squares problem in the wavelet domain. The treatment of noise is related to the singular values of the image acquisition kernel. We show that pixel-scale features can be restored exactly in the absence of noise, for various degrees of smoothness. Results are similar in the presence of noise, except for some noise- amplification and ringing artifacts that we control with an automated choice of a restoration parameter. This paper extends work in wavelet-based restoration, and builds on research in C/D/C model-based restoration.