Arman’s method. I think this one works! The issue will occur for anyone with OS10.6 or higher.
This podcast covers the issue. The guy is a bit hyper, but he knows his stuff! Skip ahead to 10:45 time marker.
PPD solution for CS5 users. This worked for me!
Download the PPD file (link below)
then place as follows:
create a folder called PPDS
place the PPD file in your newly created folder
Then, when you use the Print Booklet feature, you will click :
and in the Printer pulldown select: Postscript File
in the PPD pulldown select: Adobe PDF 9.0
make any other adjustments necessary: marks, bleed, orientation etc.
You will end up with a PS file. You should then convert this to a PDF. Either save as a PDF in Preview or use Acrobat Distiller
Download the Acrobat 9.0 PPD
Another script solution (I couldn’t get this to work, but one student did)
After unzipping, put the .jsxbin file in the Scripts Panel folder in the Scripts folder of the Version 5.0 folder in the Adobe InDesign folder in Preferences. You can if you wish create subfolders in the Scripts Panel folder.