My wife got her blue belt in taekwondo. Here are a few shots. I wanted to avoid using the flash so as not to distract her. The settings were: ISO 800, shutter 1/50:
Tony- In the future i would up the ISO and ss... i feel like there is too much motion blur... also, an easy way to post photos is to put the photo on the internet (i use flickr), then you can right click it, hit properties, and copy the url of the photo right where you want it.
I think you need faster glass. I shoot my daughters all the time at karate in horrible light and have found I get my best results shooting around 2.0 with high iso. Here's a shoot that had nothing done except probably a crop and sharpen for web when being exported from LR.