It looks authentic. Bjarne Soderholm has a 1988 signed LP that looks similar to your signed CD!! :)
You can see it on his photo album!!!
I have decided to be a spectator for a while to see how things pan out and to leave myself out of discussion. But when i saw this, i had to comment. I too am always looking for a Prince auto. I saw this same item several days ago and ran it through PSA Quick Opinion, and the result was LIKELY NOT GENUINE. I also compared it to several of Bjarnes signed LP's. Their are several similarities but after comparing im convinced its just a half way decent forgery. I would stay away, as the formation of the P is off as well. And i have seen this same item up for sale before on ebay. I am going with PSA on this one, i dont think its genuine.
Good luck in finding a good one, we both are looking for one. :)
Thanks to everyone that posted up their examples, most helpful!
The seller ended their ebay auction prematurely saying "the item is no longer available".
I got this Prince earlier in the year :