Hi Susie,
I don't really know how things have started working again. Just noticed things are OK after updating OSX to 10.4.7. I have also (I am not too sure exactly when this step was taken, and if it was necessary at all) re-updated Adobe Reader. This was done by steps, as guided by the installer, first to 7.07 then to 7.08. Wish you luck!
I was quite frustrated recieving not even one reply for so long... At least somebody cares! And since I cannot give points to myself (the post is still officially unanswered), so here is a deal: If you fix the bug following my half advice, please let us know, and the points will be all yours!