Confused about digital signatures

Please refer to this archived thread:
http://www.adobeforums.com/webx?128@@.59b4d8d6
I'm researching digital signatures because we have a request form that was created in Acrobat 7.1, and that a user signed by creating his own signature in Reader 8.x. In Acrobat 7.1, I see a message when the file is opened that it has been digitally signed, and it verifies the signature. I'm trying to figure out whether that signature process would satisfy an auditor as to its authenticity.
But according to the above thread, I'd need at least Acrobat 8.0 to "enable" a PDF to be signed. What does that mean? The form I received, by all appearances, *was* signed. It didn't need a special signature field... the signature was added over a standard text field and it was recognized and authenticated, and appeared in the signature pane in both Acrobat 7.1 and Reader 8+.
Also, what does the 500 signature limit mean? By what process is it determined how many times a form has been used and signed? There is no tie, as far as I can see, from one copy of the form to another. The user simply saves a copy, fills it out, and sends it in. Many different people use that form (it's a work request form for IS services). Does the 500 limit apply in this scenario?
If anyone could please advise and point me toward documentation that would help me understand how all this should work, I'd be deeply grateful.

>But according to the above thread, I'd need at least Acrobat 8.0 to "enable" a PDF to be signed. What does that mean?
It means that you need to use Acrobat 8.0 Professional or above to
prepare a PDF in a special way.
If this is not done, Reader cannot sign it.
> The form I received, by all appearances, *was* signed.
One possibility is that the person who signed it was not clear about
what software they actually have.
>
>Also, what does the 500 signature limit mean?
The EULA gives the legal details that lawyers would apply. It has
seemed that each copy used counts towards the 500. If there is ANY
POSSIBILITY of this limit being reached it is prudent to use Adobe's
server enabling software instead.
Aandi Inston

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