Gary,
I must say that I've never tried to Print Merge to the Acrobat Distiller, but I've never heard of any issues.
A couple other possibilities that sometimes make Corel's Print Merge to do "wacky" things:
1. be sure nothing is selected when you Perform the Print Merge
2. do not print from the Print Preview screen.
The problems I've seen from the above cautions are not what you describe, but could be related.
I'd sure be interested in the solution/explanation if you come up with one. Roy Brewer
http://www.engravingconcepts.com
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