...yes, you have interpreted me correctly ross...
...worth checking with your provider first as to what pdf version their RIP can handle, 1.3 (Acrobat 4) means flattening any transparency used in your indesign layout at export...
1.4 (Acrobat 5) to 1.6 (Acrobat 7) will retain transparency in the pdf file. For these to output correctly the print providers RIP will need to be bang up to date.
Better to go for 1.4 to 1.6 if your print provider can handle them, as RIP's that support these formats will deal with the flattening process. Bear in mind also that PDF can be edited to a degree with plugin tools, such as enfocus pitstop, but changes are nearly always better done from your source files, keeping your archived artwork up to date with whatever a print provider has output for you.
RGB images, with a correctly setup colour management, can be used with caution. The colour handling can be dealt with in your advanced options on pdf export. Keep to consistent colour profile workflow throughout all your adobe applications though, because different profiles will render different results. If colour critical work is to be undertaken make a note of your profiles used in RGB to CMYK image conversions. As a rule Adobe RGB (1998) for print work and sRGB IEC 61966 for website work.
For CMYK profiles your print provider may offer some to work with, or alternativley choose a setup from within Adobe Bridge that best suits the continent nearest you.
Andrew