Can't Embed (or open embeded) PDFs in MS Office with Adobe Acrobat Reader X

Problem:
After installing Reader X (ver 10.0) user is unable to embed PDFs in MS Office documents, nor can they open any previously embedded PDFs in existing documents.

When trying to embed a new PDF the Office program gives the error message: "Cannot insert object".

When trying to open a previously embedded PDF you get an error message that says, "Cannot start the source application for this object".

Solution:
Adobe Reader X has a brand-new-to-Reader setting called "Protected Mode".
This must be disabled in order for MS Office to be able to embed PDFs into a documents.

Disable "Protected Mode" this way:
Go to Edit > Preferences > General, then uncheck the box that says "Enable Protected Mode on Startup".