Livecycle & Reader 8, digital signatures problem

Hello,
I created a pdf document including digital signature field in livecycle. When saving and opening the document in acrobat 8 pro signing works fine, i.e. I click the signing field and it prompts for digital signature ID & password.
But, when I click the field in Reader 8 (not pro version), nothing happens. It doesn't prompt for digital signature ID.
I clearly set the version limit in livecycle to be reader 7 and upwards (not pro versions).

you need to "enable usage rights in Adobe Reader.." using Acrobat 8 before Reader can sign.

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    [email protected]
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    >>> MichaelKazlow <[email protected]> 2/18/2010 9:49 PM >>>
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    import java.nio.charset .*;
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                   catch(Exception e)
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