Raster Image compressing in PDF

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Hi there,
We have used a jpeg raster image as a part of a dynamic block which we are using for our title blocks for external drawing packages. We have several iterations of different sizes - but one of our 11x17's has a problem when we attempt to print to PDF. It takes the jpeg logo and squishes it. A square logo ends up looking like it is in a funhouse mirror. The weird part is that if you place something just off paper space, this problem goes away. but if the exterior border of the title block contains all of the elements of the title block, it happens again.
We have this same raster image on other titleblocks A1, A0, a different 11x17 format, and two 8.5 x 11's. It is working fine on all of them.
We have tried everything to change this - have built the titleblock from scratch - even deleting the paperspace tab to start again, but the problem remains and only in this titleblock.
Has anyone else had this happen? What are we missing?
thank you for your time and condideration!
M.J. Madsen