In iReport Designer, under the "Tools" menu and on the "Options" dialog, you can can options for PDFs in the export options. Although when options such as compression or encryption are selected, the property in the "JasperReports Properties" beside it does not change to match with the selected properties.
Furthermore, after manually changing the options "net.sf.jasperreports.export.pdf.128.bit.key" and "net.sf.jasperreports.export.pdf.encrypted" they will not accept being changed back manually or restoring defaults. After changing from true to false, selecting "OK", if the properties are reopened they are still set to true. Restarting iReport as suggested when removing properties, still does not put the change into effect.
Attempting to remove these properties (to be re-added with default settings) does not work as "The property <property> can not be deleted since it is set by default by JasperReports."
This issue is urgent as now all reports generated through iReports fail to open.