PDF Optimizer decreases resolution, increases file size

I've noticed that the file size of my PDF files INCREASES now when I optimize them now that I've updated to version 7.0.7. The image resolution still decreases but the files increase significantly. For example, I have a 2 page document that originally was 3.2mb as a hi-resolution PDF. After I optimized it down to 72dpi for the images the file increased to 20.5mb!! I use this feature for documents that we publish on our web sites or to send a proof to a customer.
Is this just a new bug in version 7.0.7?

MAC G5, 1 gb RAM, OS 10.4
Indesign CS3
Acrobat version : at least 7.0.6 or newer (I'm not at work to verify the version)
I'm having the same problem. Doing a SAVE AS does not fix anything.
I have created a High Res PDF of a 56 page catalogue using Indesign CS3. I had to divide the document into two sections. The first file is 131 megs and the other 78 megs. I have to print high res for the client. Then I need to downsize the resolution so that I can send the catalogue to the client. Whether I choose PDF Optimizer or Reduce file..., the 131 megs PDF became 1.27 GB and not to mention the time wasted! This is enormous! I assure you that I have checked all settings for the PDF.
To counter the problem, I have to do a SAVE AS POSCRIPT file. Then I reduce the size using Acrobat Distiller. The 131 megs file then became 21 megs, which is what it should have been with Optimizer.
I don't understand what's happening with the Optimizer? It seems that there's an update version that has installed this bug. Which one? How to fix this problem? Is there anyone on this earth that knows what to do?

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I exported from FinalCut into a QuickTime file, the file size is 485MB. Then I used QuickTIme Pro to change the movie into the above frame size, and add a letter box. The resulting file is over 6GB in files size! How can this be? I used no compression and these settings: no compression, millions of colours, Best Quality, Apple Lossless sound, 48.000MHz, Mono.
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The reason for not compressing is that Viddler will compress on its servers (into Flash). Any hints? I must stay under 500MB to upload the file to Viddler.
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PDF Optimizer decreases resolution, increases file size

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