Embedding fonts in document

I work for a Printing Display company. Illustrator CS3 allows you to embedd subset fonts only with permission bits available. The problem I'm having is some of our big customers do not want to send copies of the fonts they paid for. They save the file as a PDF with the fonts embedded so that they will view and print from either Acrobat or Reader. If I open the file in Illustrator I get a "Font missing" warning. What is the work around for this? The reason I need to open these files in a Graphics App is because we need to use our templates in order to edit colors and bleeds and such. Without the fonts it's pretty much useless. We could tell the customer to just outline all text but this is a hassle for all kinds of reasons. Would appreciate any help. Thanks.

Paul,
When you open a PDF in Illy, all text is made Live Type, using the same font. If it is not accessible on your machine, Illy substitutes another font based on her best guess for a best match.
The option of having embedded fonts outlined and thereby turned into non (textwise) editable vector objects, very useful in many cases without need for modifying wording, has long been wished. I am afraid this wish has not been met yet; maybe it will happen in CS5, or later, or never.
Those PDFs without issues only hold fonts that you have.
I thought I remembered that there was a cunning roundabout way of obtaining this, and here it is, at least for versions from CS2 on:
1) File>New to open a new blank document;
2) File>Place the PDF, ticking the Link option;
3) Object>Flatten Transparency, ticking Convert All Text to Outlines option if applicable (flattening causes outlining at least in 10).

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