I've had the exact same error. InDesignCS5 both on Windows 7 and XP.
This was the error shown (it opens up in notepad after ID fails to output the .PDF)
%%[ ProductName: Distiller ]%%
%%[Page: 1]%%
%%[Page: 2]%%
[CUT...]
%%[Page: 35]%%
%%[Page: 36]%%
%%[Page: 37]%%
%%[ Error: ioerror; OffendingCommand: readstring ]%%
Stack:
(› PoÈsKÖn µÐY5Âê2¢ ÷Fmø-êíöYJ
øR½=Ö¤%%[ Flushing: rest of job (to end-of-file) will be ignored ]%%
%%[ Warning: PostScript error. No PDF file produced. ] %%
To get it to complete the .PDF output I had to remove two images which were on Page 38
