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Both of these issues sound like they should be directed to Adobe.
In the first case, it sounds like the file opens fine in Adobe, but once you combine this with other files and resave you get this error when you try and open the files again. It's Adobe that's saving the files at this point (Reports is pretty much out of the picture). You may want to try with Reports 9i, where a higher level of PDF is output, but that doesn't mean that Adobe shouldn't deal with the earlier versons.
In the second case, Reports outputs PostScript via the standard windows printer drivers and APIs - there's no special settings for this (in fact it looks like this is a standard initialization parameter for the printer). Again, you should probably contact Adobe for more assistance.
Hope this helps,