Quote Originally Posted by Trey View Post
So will the grain be more and more apparent the further I dilute the developer?
Yes, but your image will appear sharper, too.

The same principles that make your image sharper make the grain sharper, too. After all, grain is simply undesired detail on your negative. (I shouldn't use blanket statements like "undesired"; in some circumstances, grain really makes the image.)

Similarly, using undiluted or less-diluted solvent developers like XTOL and D-76/ID-11 results in less grain, but diminished image sharpness. The same principles that make grain less sharp and more invisible make your image details less sharp.