I don't have an exact solution, but I'll post my experiences with this in case they help anyone else.
From my testing, the gray screen is only triggered on slower machines [1]. To date, I have not been able to recreate it on newer hardware [2]. All of my tests have been in IE8 with Adobe Reader 10.1.2. For my tests I turned off SSL and removed all headers that could have disabled caching.
To recreate the gray screen, I followed the following steps:
1) Navigate to a page that links to a PDF
2) Open the PDF in a new window or tab (either via the context menu or target="_blank")
3) In my tests, this PDF will open without error (however I have received user reports indicating failure on the first PDF load)
4) Close the newly opened window or tab
5) Open the PDF (again) in a new window or tab
6) This PDF will not open, but instead only show the "gray screen" mentioned by the first user (all subsequent PDFs that are loaded will also not display -- until all browser windows are closed)
I performed the above test with several different PDF files (both static and dynamic) generated from different sources and the gray screen issue always occurs when following the above steps (on the "slow" computer).
To mitigate the problem in my application, I "tore down" the page that links to the PDF (removed parts piece by piece until the gray screen no longer occurred). In my particular application (built on closure-library) removing all references to goog.userAgent.adobeReader [3] appears to have fixed the issue. This exact solution won't work with jquery or .net MVC but maybe the process can help you isolate the source of the issue. I have not yet taken the time to isolate which particular portion of goog.userAgent.adobeReader triggers the bug in Adobe Reader, but it is likely that jquery might have similar plugin detection code to that used in closure-library.
[1] Machine experiencing gray screen:
Win Server '03 SP3
AMD Sempron 2400+ at 1.6GHz
256MB memory
[2] Machine not experiencing gray screen:
Win XP x64 SP2
AMD Athlon II X4 620 at 2.6 GHz
4GB memory
[3] http://closure-library.googlecode.com/svn/docs/closure_goog_useragent_adobereader.js.source.html