Why is the "sign" feature in my Adobe Reader XI not working?

I have dowloaded Adobe XI, and the "sign" feature is "grayed out". Do I need to activate this feature, or do I need to upgrade?

Where did you download the Adobe Reader from? Someone can upload a "Customized" copy.
Regarding the grayed out EchoSign features, you should check the following location for feature lockdown:
Registry entry by searching for "featurelockdown" key;
Group policy change (GPO);
One can also easily remove or restore the "Sign" icon, the "Tools" icon, the Adobe online features, the acrobat.com cloud features from the menu, etc.
You should be able to use the EchoSign on any PDF files. I tried various files:
"Secured" PDF file;
"Signed" PDF file;
PDF snapshot from image/photo;
any converted to PDF file;
any print dump to PDF; etc..
Adobe Reader XI is very powerful. I can use it to modify any PDF file regardless whether it is secured. I can make the change as a part of the document, not as a comment/annotation so that you can not tell I am doing the forgery.
But the default official Adobe package or online installation should be have the EchoSign features active.

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