Cannot draw signature box in Acrobat XI

When we try to sign a PDF using Acrobat XI Standard we get the popup box below telling us to create a box for the signature to appear in. The problem here is that is exactly what we are trying to do when this box comes up. We click the signature tool and get the cross-hairs cursor...as soon as we click to hold in the document this box appears and doesn't give us a chance to drag an create the box.

We have verified the digial ID to sign with is installed correctly.

Please see the screenshot below:

Thanks for any help,

Anthony