http://www.bananas.org/gallery/data/580/Bananas_055.jpg
It is double watermarked you just can not see it cause it is covered
Move you watermark to center or top left and you will see what I mean
There is your large image right above and it has your permanent watermark on it
As I have said a few times here you need to turn on ONLY ONE FORM of watermarking
Right now you have both forms turned on.