Illustrator CS4 image resolution not downsizing

Hi, I'm new on this forum but hope someone can help.  Had a look around and can't find anyone else with this problem...
Just had AI CS4 put onto a new machine and I've imported my previous presets for saving PDFs for print. 
In the "Save Adobe PDF" box, under "Compression", it's marked as it always was as Bicubic downsampling to 300ppi for images above 300ppi for colour and grayscale images (compression automatic (JPEG); image quality maximum).
However, it's not actually doing this.  The images are remaining at the resolution they have been dropped in at (some at 1000 dpi), making the file sizes huge.  I've had a play about with the settings and it's never changing the resolution.
Any help would be gratefully received!  Many thanks in advance,
Chelle

No offense intended but the truth is you should be dropping the image files in at the resolution you intend to use them in the first place.
For most Offset projects that would be 255 ppi although some printers require as high as 355 ppi. Inever understood the latter spec though.
And for inkge that is way too big 200 ppi would be more thn enough.
I know this answer you want but it would be wise to change your workflow.
As for your actually question I have no cle as to what might be happening.

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