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Level 6

That's odd, assuming the XFA PDFs were not converted to regular PDFs before inserting them. You're saying you did this in Acrobat, correct? You can't use Acrobat to two XFAs (static, dynamic, or any combination) in any version of Acrobat I've used, which doesn't include 8 but does include all the rest. Out of curiousity, did the forms continue to be interactive and behave normally after you inserted them into another PDF?