The PDF specification provides for an interpolation entry in image dictionaries. When set, (it's boolean - either on or off), it instructs the output device to interpolate the pixels at device resolution. I don't believe compliance is considered to be mandatory, and there is no method of interpolation suggested. Acrobat (and our RIP, which is the Adobe PDF Print Engine) uses bilinear interpolation on images that have the property set.
The good news is that it's essentially cost-free in terms of file data since you're not adding a bunch of extra pixels, and you can do it with Acrobat Professional since version 8 (earlier versions will show interpolation but provide no way of turning it on). I believe Enfocus Pitstop can check for it, but cannot turn it on or off.
It is possible there are devices/readers that would honor interpolation for 8 bit data, but not 16 bit, or indexed, or ICC tagged, etc., so you would want to test heavily if this is very important.
I tend to agree with Stephen. Interpolation turns sharp pixel edges into blurry gradients, and I personally believe that the low-resolution look is more forgivable than the I-took-a-blurry-out-of-focus-image-and-slapped-it-on-my-newsletter look.
Gordo, I think you might have a point for limited resolution increases - particularly for the fancier algorithms that are almost interpolation and sharpening combined.
To change it with Acrobat, you need to create a preflight with a single "fixup." I've attached a screen shot of the fixup that gets it done.