This is something similar to an error we received when we output optimized postscript and distilled in distiller 9 (we went from 7 to 9). Techs at printable said adobe changed an option in distiller and you have to add an "option" when starting distiller for it to allow processing of optimized postscript. We had to add an /F to when starting distiller. I created a shortcut to the distiller program and changed the "Target" when looking at the properties of the short cut. This is what our's looks like...