Done and done. I was trying to fix the issue of people making their sigs like UltraMatt's with lots of spaces and stacked crazy high. Not to bust you out dude, but if we bring Sigs back I do want them to be under control like what Koji's got going on.
No sweat bro, I totally understand what you were trying to get at. I've said this many a time before, when you're on a forum like this, you have to keep in mind that a sig is just a small thing at the end/bottom of your posts to help remind everyone who is making the post. It's just like writing your name at the bottom of a letter. It's just meant to be a small thing. When your sig is 4 times larger than your actual posts, then something is wrong. People come to see your posts, NOT to see your sig (though with my sigs some people may beg to differ

).
Anyway, the way I personally see it, what we need is:
a) some definitive guidelines (banner dimensions, how many lines of text at what font size, etc) as to the absolute MAXIMUM size of sig that's going to be allowed here. Some forums only allow text in sigs (i.e. no pics/banners).
b) anyone who goes beyond that will get little reminders from their friendly neighbourhood mods/admins about what's allowed, and then given a short period of time (say a day or two) to fix it
c) anyone who ignores these friendly reminders will get a second one, if they don't heed that one, then the staff will temporarily disable the sig until they fix it.
This is VERY common practice at forums where they allow sigs. There are more that don't allow them at all. We're at least giving people that option. It's not a right to have a sig, it's a privelege. As such, if people want to keep that privilege they need to follow the guidelines we set for it.
There are many options that can be taken to handle this. We just need to establish what OUR policy is going to be, and then stick to it like Rosie O'Donnell sticks to her bitch-juice.