forms

Hi, Newbie here,
Using Acrobat Pro 8.1
I'm trying to create a form, actually converting from MS Pub, but the form recognition tool doesn't recognize all the fields. I can probably take care of that by going back to the original Pub document and add text fields where necessary, or is there a better way?

My main problem is more difficult for me to figure out, however.
1- One of the fields needs to be flexible in the number of lines the recipient will enter without changing the size of the box. I don't want the lines they type to go across the box indefinitely, rather continue on the line below. (Just as this box is doing)
2- I would like to have the instructions for each particular field to disappear when the recipient filling out the form enter the data.

Is anyone out there feeling magnaminous enough to help an old guy figure this out. :-)
Thanks,
Scott