OK, i figured this out myself (with significant help from on-line sources and my buddy glen), so i wanted to post for others to not have to go through what i went through. here you go: the cert from verisign is a .p7c file, which, when imported into keychain access, is not recognized as your own cert. apparently, it must be a .p12. how do you transform your cert from .p7c to .p12? easiest way (actually, the only way i found) is to export it from firefox (when you double click on the .p7c it automagically imports into all browsers as well as keychain access). so, in firefox, go to preferences > advanced > encryption > view certificates. you should see the cert from verisign. then click on it and click the backup button, which will create a .p12 cert. then delete the cert from verisign from keychain access that is in "certificates," and import the new cert (either drag it to the keychain app icon or use import). you should then see a cert in "my certificates" from verisign. quit apple mail and restart it, and you should see the sign and encrypt icons in the compose mail window, and it will properly digitally sign and encrypt emails. i was able to do both successfully after this operation. good luck!