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I have converted an ~450MB word file, with 50+ plus short video clips embedded as BOTH H.264 .mp4 objects (so video is clickable in Word) and as Shockwave Objects (embedded and viable in PDF once converted via Acrobat Pro). When I convert to PDF, the mp4 objects turn into inactive tiny images (hence the Shockwave object existence), but the size of the PDF is still ~450MB. Looking at the PDF Optimizer -> Audit Space Usage report, it shows that nearly 97% of my PDF is made up of "Embedded Files" (not an embedded font problem).
It seems like the conversion is copying over the .mp4 video as an object within the PDF file, but then doesn't do anything with it. I haven't found the right magic setting in the PDF Optimizer (if it is even there) to remove the "unnecessary" embedded data. Thoughts?
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Look for the PaperClip button on the left side of the Acrobat Window. This button exposes the File Attachments Panel.