Thanks for your report.
Indeed, uncompression does not work in pdftk version 1.41+dfsg-1, but should
work in earlier and newer versions, since it was fixed in 1.41+dfsg-2. So the
bug should be limited to Karmic.
See the package changelog (/usr/share/doc/pdftk/changelog.Debian.gz) for all
changes
I just made a Lucid instance on Rackspace Cloud and pdftk uncompress
functions correctly. So it appears to be limited to Karmic and possibly
previous distros.
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uncompress option not working
https://bugs.launchpad.net/bugs/618322
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