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Had the same issue and it was related to the console not being logged on. Try logging into the Console as an Admin, then test the PDF creation from a Citrix session.
The fix we've put in is to run a service on the server that starts distiller on boot up. This works fine - the article covering the steps is in this forum somewhere.
Try this out...
Making Acrobat Distiller a Windows Service
1) Run the following at command prompt: "C:\Program Files\Resource Kit\Instsrv.exe" "Adobe Acrobat Distiller Server" "C:\Program Files\Resource Kit\Srvany.exe"
2) Launch regedit and go to HKEY_LOCAL_MACHINE\SYSTEM\CurrentControlSet\Services\Adobe Acrobat Distiller Service
3) Add key called Parameters
4) Add a Value under Parameters key with the following attributes:
Data Type : REG_SZ
Data : C:\Program Files\Adobe\Acrobat 6.0\Distillr\acrodist.exe
5) Open up Acrobat distiller service and assign the right login with file system access priviledge.
6) Log in as that startup account in step 5), launch distiller and configure appropriate watch folder. Afer verify watch foder work, exit Distiller and startup the service.
Use the following link as reference if you have any questions.