I can also confirm that this is not working when embedded on a website.
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SamAsked on February 24, 2013 at 03:04 PM
I can also confirm that this is not working when embedded on a website. Very cool feature though! Just signed up today and I definitely needed this. I'm sure you'll work out the glitch soon.
This is a re-post of a comment on Announcing E-Signatures for Forms