Well, you have to swallow a bit of computer-company double-speak.
OS X on the Mac saves PDF version 1.3. There is nothing wrong with the PDF,
but PDF has various versions. Adobe won't let anyone produce the latest
version without paying a hefty licence fee, which Apple and Microsoft
sensibly decline to do.
The ISO standard is PDF 1.7, the latest version is PDF 1.8. See
http://www.adobe.com/devnet/pdf/pdf_reference.html
Adobe keeps trying to blame the lack of hyperlinks on the Mac on Microsoft.
As we have tried to explain to Phillip, that's nonsense: Microsoft Word has
fully supported Hyperlinks since Word 98.
The reality is that the PDF Writer that writes the PDF needs to read the
input file properly. The hyperlinks are in the file: but it's Adobe's
responsibility to get them out.
On the PC, Adobe has created an application known as PDFMaker that does
that. They have consistently refused to make it for the Mac.
I hope that the next version of Microsoft Word on the Mac will offer XPS
(XML Paper Specification). This is very similar to PDF, but it is encoded
in XML instead of PostScript. And hyperlinks are required in XPS for it to
work, so they will work perfectly
Cheers