> This was created with an older Adobe Photo Deluxe program.
Ah. In that case, the fonts are raster regardless, so
you probably can't create a fully vectorized PDF.
> Are you saying that I should have saved it as TIFF ...
Worth a try. Since the image is mostly large regions of
one of two colors, repeat-count (TIFF's optional LZW/ZIP)
compression is apt to be more effective than curve-matching
(JPEG's DCT) compression.
I also have Microsoft Works, Picture-It, Paint, and Microsoft Word. Would any of those work any better?
I have to admit, that some of your "lingo" is strange to me - I have not done a lot this type of work.