Security for Dunces

I'm working on a pdf for limited distribution. 
It appear that my options for securing a pdf is limited to this (using only Acrobat software):
1) password protecting it (1 or 2 levels depending on whether or not I want people to be able to fill out fields or print or other)
2) using certificates in which case I need the following:
    a) their email addresses or personal certificates in advance
    b) the above but only good for a year
3) the ability to magically figure out javascript which will transform the same pdf - once it's copied elsewhere - into a pdf with a watermark that says something like, "THIEF".
It seems as if #3 option only exists in my head, and does not really exist an option.
or
4) pay another company to handle all this, which might be a thing to do if I have 1000+ people wanting the pdf, but not such a great plan if I expect only 379 people want it.
Does anyone have educated thoughts on this?  I've been searching / googling for days on this and have come to the conclusion that either it's not clear what my options are - or that my options require me to throw my hands up in the air.
I've got Acrobat 9 pro and have downloaded a sample copy of XI to see if there's been an improvement.  I'll buy XI if there's the improvement that I need.  but looks like I should just get into, say, another business altogether.
Jeepers.

I am no expert, but my thought on this is to 1) password protect the editing (which disables copy/paste) 2) upload the pdf to a cloud service that you can limit on who has access to it, by sending email requests, you know who has the document, making it easier for you to do what ever legally. which can be anything from removing them from the list to court action. Depending on the situation and the document.
At this point there would be only two options the reader could do, capture their screen which would be low resolution or pass on the pdf it self.
What would be nice, is a way for you to get a log for anyone entering a password to read the document and supplies you with an IP address. That would be enough to allow the legal system to start investigating.
Since acrobat does forms and can send via the net, it wouldn't be much of a code change for adobe to do so.
Anyway, I am just thinking out loud...

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