I have a strange problem. When I upload an image to photopost with a PNG watermark, the entire image is degraded enormously. I have the quality setting to 100%, there is no resizing, and I'm using GD to process the images. The PNG I'm using is also a hi res file with a little transparency.
Here is an example of the same image uploaded with a watermark and without. Notice the color saturation changes dramatically and there is a slight fuzziness in the watermarked image.
Without watermark:
http://www.streetlegaltv.com/photos/data/623/HDR1_1.jpg
With watermark:
http://www.streetlegaltv.com/photos/...23/HDR1_11.jpg