Answered
When trying to open an embedded PDF in Word 2003, I get an error stating, "The server application, source file, or item cannot be found. Make sure the application is properly installed, and that it has not been deleted, moved, or renamed."
If I open Adobe Reader first, the file opens fine.
[Several users experience this problem on their own workstation but the same document opens fine on another workstation by the same user!]
(this link above claims to have the solution (you'll have to become a member first and enter credit card info etc. and if your lucky you'll be able unsubscribe in time)
so there are actually more people experiencing the exact same problem!! Why doesn't Adobe offer this solution?