How to capture motion with poor artificial light?

I have a Nikon D3000 with a 55-200mm VR lens, 4-5.6 aperture settings. I like to take pictures of track and field, and right now it's the indoor season. When I take pictures with artificial light and a high shutter speed, such as 1/250, the pictures come out very dark. I have toyed with my ISO settings and usually have it at 1600 or Hi-1 when inside to bring out as much light as possible. To solve that problem I have been slowing the shutter speed to 1/25, ISO to 800 and aperture to 5.0 and getting quality shots, but when the subject is in motion, it gets blurred. What settings work best in poor artificial light? I have been told a high shutter speed, low ISO (200-600) and aperture at 4 or lower. Will that work?

Wow, that is very low light for shooting sports.

You are correct that shooting at shutter speeds from 1/250th second or faster is necessary to prevent blur when shooting sports or any action photography

Since noise is preferable to blur and you can correct some noise using Lightroom 3 or Noise Ninja, I would shoot at Hi-1 (3200 ISO) and deal with the noise later in post

You are going to have to depend upon the cameras light meter to assure proper exposure.

Here is what the noise looks like when using an older Nikon D300 at 3200 ISO

You need the aperture as wide as it will go (but you'll lose depth of field, so accurate focusing will be necessary), the ISO as high as you can tolerate (it will increase the noise on the image - how much is 'acceptable' is a matter of taste) and see what you're shutter speed is then. If its still blurred then there's nothing you can do - there just isn't enough light. Don't forget because your telephoto zoom isn't a constant aperture, if you are zoomed out to 200mm then f5.6 is the widest you'll be able to go. The nearer you can get to the action, the wider aperture you can use (at 55mm, you'll hae f4).

Sports photographers use fast telephotos, with long reach and wide apertures (usually a constant f2.8 throughout the zoom range) but these lenses are NOT cheap.