This one had me chewing my teeth for a few days, but it looks like it’s been worked out. The issue is that a user will try to insert a PDF into a PowerPoint file (any version 2003/2007/2010), and they receive the following error:
The Server Application, source file, or item cannot be found, or returned an unknown error. You may need to reinstall the server application.
You can try to insert via Insert Tab—>Object—>Adobe Acrobat PDF or dragging and dropping the PDF directly into the PowerPoint file. The fix for this I found after posting to the Adobe forums. Disable Protected mode if you are running Adobe Reader X. (this is accurate as of v 10.0.1)
Disable protected mode manually by choosing Edit > Preferences > General tab and deselecting Enable Protected Mode. The fix wasn’t immediate for me oddly enough. It made the “Create New” button work for inserting, but not “Create From File”. This behavior ended after a day, perhaps a reboot is in order after changing the setting. Either way, it worked!
Let me know if you’ve had a different experience. More importantly, update the Adobe forum threads discussing this if you have additional info to add.