The "Down Sample" option is unchecked and the "Preserve Annotations" is checked.
I am using sample data for the job at this point and there are only 75 records and only about 10 of the records have the variable images in them. I can see how it would take a while for them to render with a large data file, but this one is relatively small and I don't open the PDF until it has processed as complete.
The thing is, sometimes the file will compose with the images coming out as lo-res and sometimes it will compose with hi-res and I haven't changed any settings. I have had this issue with other files as well.
I could compose the file as VPS instead of PDF, which I will probably do when we go to print the job, but for proofing purposes, I am composing PDFs. Our customer isn't going to want to see their PDF proofs with lo-res bitmapped images.