Weird grey boxes behind type areas

Okay this one's got me scratching my head...
Quark Xpress 7.31 exporting a page containing a news story, several photos and a few ads: Intel dual core PowerMac Tower with 2GB RAM running 10.4.11 and CS3.
We export the page as a .ps file from Quark Xpress using the "Export Layout as PDF" function and fire the file into a Distiller 8 watch folder. Distiller spits out a PDF in the usual way BUT... now all of a sudden we're seeing square 30% grey boxes behind all of the type areas on the page.
The grey areas are precisely rendered to match the text box locations in the Quark Xpress layout, and look as thought the Acrobat 8 application is generating them - almost as though it's a form of markup. It also resembles the effect you get if you took a standard PDF with embedded type and swept a test area with the text editing tool; the area you swept would highlight in light grey... which looks like the effect on-screen - only it's permanently active and cannot be disabled.
If we open the same 'erroneous' PDF on another Mac in our department running the same OS version and Acrobat 8 it looks the same with grey boxes. If we open the same PDF on a Mac running the same OS version and Acrobat 6, it looks fine with no grey boxes at all.
In all instances, the grey boxes do not print if we send them to a proofer or the RIP. It appears to be a display issue only. But it's mighty worrisome come press time... I've also run permission fixes, Onyx, Applejack, etc. to no avail.
Anyone? Could it be prefs related?

What colour space / tint / values are you getting inside the output
preview inside of Acrobat when you click inside these grey boxes?
Jon

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