Cannot Sign a PDF in Acrobat Xi with a JPG file

1) Every time I try to sign a document in Acrobat XI it required me to draw around the signature area, and then choose a digital ID. I don't want to use a digital certificate...i just want ot sign with my jpg signature file that worked on Acrobat X!!!

2) How do i reset all the security on my Acrobat system - the Edit Preferences only shows certificate options!!

3) When I go to sign a document, there are no options in the "Place Signature" item - no drop down list, no options, nada - how do i reset this to select from a file?

Please advise