Originally Posted by Chuck S
It should be no
As far as the watermark check to make sure its a 24bit transparent png image
It works fine with ON THE FLY watermarks as you can see. I turned off permanent watermarking and turned on the fly on and it shows fine. Now on permanent watermarking if its not stamping the image I should be getting an error but I am not which is extremely weird here thus lets see what your server logs say.
Also try moving the watermark image under your data directory and change the path there.
Ok, I'll move it to the data directory.
I dont' have server logging turned on because of the large load the server recieves.