Trying to understand this whole Reader Extension product

Hello,
I'm trying to get a handle on how this whole extensions thing works. We're using LifeCycle Designer 7 to generate forms (both and xdp and pdf). We want our users to be able to access data from ODBC connections and potentially from WSDLs. Our clients (right now) only use the free Reader 7.0.x.
It's my understanding that the pdf in this case needs to be 'extended' in this case. So say we purchase an Extension for this form for $x. Is this a valid scenario.
Pdf/xdp is generated. The pdf is 'sent' to an Extension server for some sort of encryption that the free Reader understands and thus enables the data access capabilities. Then the user is free to use this form and it's data access capabilities in perpetuity. Basically it's a one time fee for that one form.
If this is true, then...
Where is this Extension Server that encypts the form?
Does the free Reader have to validate against that or any other server to enable the data access capability?
What happens if the form is changed?
This might be it for now.
Thanks,
Bob

Generally the license is based on the number of users. I have about 550 users in my organization (DON in New Orleans), and I paid a fee based on that number. Theoretically the "unlocked" forms are to only be used by the licensed users. That is a bit difficult to do.
I will unlock a Navy form for my users, but its hard to prevent them from getting passed around to users outside my sphere of influence.
I usually put in some read-only statement that makes it difficult for others to use it. That is mostly for my own self-protection.
Actualy even after a form is unlocked, minor adjustments can be made to the form without it needing to be passed thru the reader extensions product. I've changed field attributes and even added and taken out fields with the form extension still intact.
John

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