R u using a Mac or a Windows?
On a Mac you can see the PDF preferences under the Preferences option in the QuarkXPress menu. On a Windows, you will find the same under the Edit menu. It allows you to check the 'Direct to PDf' option which will allow you to distill the project immediately.
To compress the PDF size, in the same PDF preferences box click on the 'Default Options' button (on Windows, it is simply 'Options')and go to the 'Job Options' tab. Choose 'Manual JPEG High' as compression for both color and grayscale images. For resolution, choose 'Downsample to' for both and use 72 dpi. You can choose 'CCITT Group 4' for monochrome image compression.
This is really going to bring down the PDF file size.
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Have Fun.