When you save as .ai file, the default is to for SAVE AS PDF COMPATIBLE to be on. If you are not going to place your .ai file in another Adobe program turn that OFF. Your file will save much quicker and smaller, especially if you link to images rather thatn embed.
You should easily be able to get smaller than 200mb for a graphic that is letter size or smaller. I would save your PDF with the images compressed to max quality. The human eye will nto notice any quality difference with that small amount of compression. Find out what DPI your images should be from your printer, and adjust aht when saving your PDF, you images might be of much higher quality thatn the best the output devie can do.
Newspaper alwasy used to be 65 lpi which meant 130 dpi was good enough, but todays newspapers print more color covers so am guessing they are around 100 lpi which menas you probably want about 200 dpi, but not more than 300 dpi.
