Sorry Chuck, the more I have tried to make the things clear, the more complex it became. Pl. simply "refer" to the settings with location (like I did) and the "option" to select i.e. Yes or No.
You are saying:
That is correct those options set to yes
Now which one, all the three set to Yes or Just one or Two
in admin you have watermark image set to NO
In admin, where pl. refer the path and setting string also.
Actually since you know all this so it may sounds easy or very easy to you for for the new users like us these setting do matters a lot.
Pl. tell me the complete setting with option selected for "non-permanent watermarking"