It never fails to amaze how some people have got so much time to be so unhelpful and rude. I will have a go at answering the original posters question.
1. Wavepad or any other programme will not be able to apply noise reduction whilst it is actually recording. That is a limitation of the recording process and also because the Wavepads noise reduction requires a lot of slow processing.
2. The best thing is to try to stop noise getting into the recording in the first place. That is always better than trying to clean up the mess afterwards. So NCHNS's suggestions are valid. Particularly taking out the 20dB boost. If you do that, you can increase the level going into the microphone (by getting closer or speaking louder if possible). This will increase the signal to noise ratio.
3. You final option is to get a better microphone/sound card combination. Or buy a device such as the Zoom Handy H2 recorder.