Hi, have taken a look on your topic...

can reproduce your problem, size increases...additionally the pictures are distorted for me (maybe related to java 1.6 ...search the bug report here, there are suggestions for -Djava.compiler=NONE).

some questions to your setup:
first, why your pdf has the (complete outdated) version 1.0? tex should be able to produce at least 1.2 or 1.4... maybe here is one root of the problems.

second, the compress tool only changes pictures if told so.... with the additonal -jpeg switch, was this activated?
see: http://multivalent.sourceforge.net/Tools/pdf/Compress.html