And another issue, in a part if you have copied a sketch from another part and it has dimensions that are not "driven" you can not scale the sketch. In my case our logo at work, I copy it from one part and past it into the new part, if I need it size to be different I scale it.
SP3.1 worked fine...................but heck, it must be a new security feature................
I contacted my VAR, who suggested updating my Adobe reader. I updated Adobe and reinstalled SP 4.0. This time I can see the pdf logo in my drawings. It was likely either related to Adobe or just a bad install.