Basically right.
Close.
You may want to resize the image though before you do this. It's big. Really really big. And quite nice, by the way!
Use this text in the sig:
IMG SRC="http://i123.photobucket.com/albums/o284/fungreggy/iikubo2.jpg"
and
Put a 'less than sign' < before the IMG and a 'greater than sign' > at the end of the line. If I put them in above, you won't see the "code" you'll see the pic.
HTH,
-BT