Acrobat Font Embedding Puzzle

I'd appreciate advice and counsel from anyone who can educate me on
what's going on with a Mac OS and Acrobat PDF font embedding puzzle I'm
encountering:

* Mac iBook G4, OS 10.3.9, Acrobat 7.0 Standard

* Computer Modern fonts (CMSS10, etc) are all in the /System
Folder/Fonts folder (i.e., the Classic system folder), but show up in OS
X Font Book as present and recognized.

* I generate a typeset document using Textures under Classic and the CM
fonts; Print it to a PostScript file Original.ps; open Original.ps file
with Acrobat 7.0 Standard (A7S); Save it to an Original.pdf file. The
resulting slides look fine, whether or not "Use Local Fonts" is checked
in Acrobat.

* I do some editing on Original.pdf using Acrobat's TouchUp Text Tool.
Edits appear OK so long as "Use Local Fonts" (ULF) is checked, but turn
into dots if it's not, with error message

Fonts could not be edited . . . font on page and system
font are encoded differently and the encoding could
not be resolved.

* If I try to save this edited version to Edited.pdf, with or without
ULF checked, I get another error message saying fonts could not be
embedded.

* Edited.pdf when re-opened in Acrobat 7.0 again looks OK on my machine
if ULF is checked, has dots if not -- and also, does NOT look OK on
anyone else's machine, Mac or PC.

But here's the kicker:

* I Open Edited.pdf on my machine in A7S with ULF unchecked; it does
not look OK. So, I Save this edited version back to *PostScript*, from
A7S, naming it Edited.ps, and then re-Distill it to a new version named
EditedAndDistilled.pdf using the Distiller that's part of A7S. Net
result is:

***This new EditedAndDistilled.pdf file displays fine, including all the
edits, on my machine and others, with or without ULF checked -- and its
file size is about the 1/2 to 1/3 the file size of the A7S-created
Edited.pdf file, which doesn't display OK.

I'd like to understand what's going on here . . . Is Distiller really
that much better than the A7S it came with? How come Distiller can cope
with the edits in the .ps file, and A7S can't?

Thanks . . .