LGPL

I'm trying to create a java based plugin for an IDE (non eclipse), for which I need PDF generation. I started using iText, but I read somewhere that I cannot bundle this as part of my plug-in for distribution. I'm finding it hard to comprehend license agreements.
What is the difference between lowagie and iText. Is this just version difference or up-gradation to library. Which one recommended to be used.
Can iText 2.1.7 (MPL/GPL) licence be used in commercial projects? I am not a legal guy but lots of discussion threads suggest that there is no issue using the earlier version (2.1.7) of iText in commercial projects as that version is bounded with terms & conditions governed by MPL /GPL license.