After reading
this this I can say, pdf files have a user & master password set.
splat, can you confirm this? Do you have to enter a password to open the pdf file?
If yes, it depends on encryption whether iLiad can open it. I willing to test your file. Or let us know the encryption mode [strg+d, then security tap in Acrobat]. iLiad can open password protected pdf files, but it depends on encryption method.
In general knowing the user password - needed to open the file - it is a 1s-operation to decrypt the pdf-file with very special software.