"Operation is not permitted" error when opening PDF form in Reader 7

I created a form in Adobe LiveCycle Designer. Its only dynamic elements are text fields, drop-down boxes, and radio buttons. There is also some FormCalc scripting behind the scenes to do things like add numeric fields, etc.

I saved the form as a PDF version 7 static.

I can open the form in Reader 7 or Acrobat 8 no problem. However, if I enable usage rights in Adobe Reader (in Acrobat), I start to get error messages whenever I open the file:

It gives me a dialogue box that says "This operation is not permitted." The only option is to click OK. You do this twice and that's it.

What operation is not permitted?

How can I get that dialogue box to go away?

It doesn't pop up until after I enable usage rights, so that must have something to do with it, correct?

Any help is greatly appreciated!

Thanks,

Craig