Acrobat/Reader 9 were the first version to incorporate AES-256 code, so if you want to remain backwards compatible with Reader 7 or 8 you need to continue to use AES-128. I believe this is documented in the help for the section that describes how policy edit works.
Acrobat/Reader 9 were the first version to incorporate AES-256 code, so if you want to remain backwards compatible with Reader 7 or 8 you need to continue to use AES-128. I believe this is documented in the help for the section that describes how policy edit works.