I have a report that its output is a pdf file. I want crd to zip this file create a password for the zip file and mail it.

All this can be done in the output properties of the schedule.

When recieving the report by mail i get a normal pdf file with no password instead of a password protected zip file.

any suggestions?

If you double-click on the pdf file in the zip, it should ask for a password then. And the pdf will not open till you provide a password.

The file created is not a zip file. its the normal pdf..