In this economy how can you really negotiate a raise within your existing company? Has anyone been able to do it? I get the “if you don’t ask you don’t get” mentality, but at the same time things look bleak. Any tips?

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Totally depends on the org and the bosses.
Gotta use the consulting magic.

We have to leverage the extra work that we do and how much of it to make our case.

Sadly, the generic amount and quality of work are not enough.

It's possible, but you have to go into the negotiation with some material to work with. Take notes on things you've done that have been successful, and use those workplace wins to make a strong case for yourself. If you've been improving as an employee, that's the key to it. You can argue that you're more valuable now than you were a year ago or two years ago, and your compensation should reflect that.

It’s not that easy to get a raise or adjustment at the place you’re already working. It’s better to just find a new job and take the better offer.

Agreed your best bet is to get a bump on the beginning

You definitely can if you can present why you deserve the raise. I was able to this year but it took several months. I would gather as much evidence as you can to justify a raise and then go talk to them.

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