Magnesium diboride (MgB2) powder was mechanically alloyed by high energy ball milling with C to a composition of Mg(B0.95C0.05)2 and then sintered at 1000 C in a hot isostatic press. Milling times varied from 1 minute to 3000 minutes. Full C incorporation required only 30-60 min of milling. Grain size of sintered samples decreased with increased milling time to less than 30 nm for 20-50 hrs of milling. Milling had a weak detrimental effect on connectivity. Strong irreversibility field (H*) increase (from 13.3 T to 17.2 T at 4.2 K) due to increased milling time was observed and correlated linearly with inverse grain size (1/d). As a result, high field Jc benefited greatly from lengthy powder milling. Jc(8 T, 4.2 K) peaked at > 80,000 A/cm2 with 1200 min of milling compared with only ~ 26,000 A/cm2 for 60 min of milling. This non-compositional performance increase is attributed to grain refinement of the unsintered powder by milling, and to the probable suppression of grain growth by milling-induced MgO nano-dispersions.