I tried to same and my model dont get near as bad as yours. Maybe you have to reset your settings in the sub-d to poly option. However, use the different modelling techniques what suits the purpose most. I know theres many different opinions in here - and maybe even my opinion will change while archiving further skills - but I think thats polys is best for character-design, nurbs for dead things (such as cars, houses etc.) and sub-d for more toon-looking creatures. I do however combinate the technigues but allways end up with polys. Smooth your model a bit and it will look like the sub-d. I dont know (yet) how to paint on sub-d's. Hope this was useful - maybe someone else know how to paint on sub-d's???