Reader Extensions & offline collaboration, annotations and commenting??

I recently finished creating a first aid report in LiveCycle Designer.
The form includes a diagram of the human body (front and back), and we ask users to circle the body part affected or injured. This assumes that users will have access to annotations and commenting. However, I have discovered that, when opening this in Acrobat and exporting/saving the file as a Reader-enabled PDF (supposedly enabling Reader Extensions, in other words), this does not appear to have any effect: the annotation and commenting tools are not accessible in Reader.
It does appear, however, that users may still submit the form via email.
I do not fully understand usage rights and perhaps I'm also not fully understanding the [rather obfuscatory] Adobe documentation. Can these usage rights be enabled through Reader Extensions alone, or does our organization need to have some kind of special collaborative "magic" on the server in order to achieve this?
Can someone provide me with a detailed step-by-step that explains how this might be achieved?
Again, forgive my ignorance. [Offline] collaboration is not something I'm familiar with, being very new to the world of forms design in LiveCycle Designer. (We are using ES2, if that makes any difference...)
Thank you.

Hello, George.
The form in question does collect the following information:
- witnesses' names (first and last) with the ability to add/remove rows
- button to allow the user to attach witness statements and other supporting documents (e.g., photo of location, hazards, wounds/injuries)
There are also autoexpanding textfields that ask for the user to describe the location, incident, injuries sustained, hazards/environmental conditions that caused the incident/injury, preventive/corrective actions to be taken, etc.
All of our forms include a "Submit by Email" button and this has not presented any problems, regardless of platform; the only challenge thus far is that those using Reader won't be able to attach anything using the button in the form itself; they must use Acrobat instead. The workaround for that is to attach a message to the button using the Action Builder that lets users know this and that, if uing Reader, they will need to save a local copy of the form and ensure that they attach all pertinent supporting documents to their outgoing email message.
We'd like our forms to remain flowed, if possible. WIth this one, it's the piece asking the user to circle the affected/injured body part(s) that is at the root problem, it seems.
George, could you tell me more about distribution and what this entails? We are a large organization (3000+). I'm not certain of the particulars of our particular license agreement; I'd have to look into that further.
Where else might we potentially run into difficulty?
Thanks again for your help and information.

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