I've been shooting pics at my daughter's basketball games over the past few weeks with my FZ20. Her games are held indoors with below average lighting... sound familiar? Because of the lighting, even ISO400 and a 2.8 f-stop won't get you a shutter speed over 1/60th or so... way to slow to freeze the action.
FWIW - I shoot 2 ways. I shoot some with ISO400, f2.8 and 1/250. The pics are dark and a little noisy, but I can make them decent with Elements 3.0 and Neat Image. My best results come when I crank up the flash +2 and shoot in P mode. The pics are pretty good, but I have to choose my shots carefully.
One of the other parents shoots with a Fuji 5000 and has similar probems. This is what we've come up with so far. Experimentation is the key, I think. I'm open to other suggestions too!
Good luck!
- Scott