Compress PDF missing from Preview

I want to compress a PDF I have created. I've been told that in Preview, in the Print dialog box, in the PDF menu there is an option "Compress PDF." That option doesn't appear in my dropdown menu. It doesn't appear in that menu regardless of what program I'm selecting Print from.
I have a new MacBook Pro I bought last August with the latest version of Lion.
How do I get that compression feature to work on my system?

The assumption is that "Compress PDF" found in the Preview PDF menu is the same as the Compress you refer to. My friend claims to (I haven't actually seen him do it) use the Compress PDF in Preview and got a 17 MB file down to 600 KB.
When I try to compress the file it makes no significant change in file size. Is my friend's system set to a different compression ratio or could there be a difference between these two types of 'compress' or something else?
I've looked online to see if there is a way to adjust the compression ratio. Certainly nothing obvious or user friendly. Not that I'm not capable of command line, but I don't want to go that route. My friend knows much less about computers than I do, so I'm sure he hasn't made any adjustments to his settings.

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