I've just started testing with it and haven't noticed that problem yet, but my PDFS are all one full page, one blank page, one full page, one blank page...
B) I always thought an MSDN subscription was the most cost-effective way of licensing SQL Server (and other dev tools) for a development environment...?
I do something similar, but my largest recordset is about 15000 rows. I don't know how long your query takes, but what I do is return the TOP (pagesize*pagenumber)...