I noticed a lot of pixelisation with this and decided it was because the page was using the resized image rather than the original full size version to add the watermark to and then just stretching it up to the original's dimensions.
The showimage page was missing the
&original=1 when asking for the img source url bit.
I fixed it for me by editting the
functions_gallery.php file,
FIND:
Code:
Content visible to verified customers only.
and REPLACE with
Code:
Content visible to verified customers only.
First time I've looked at watermarking stuff though (at 4:30am...), so I may be mixed up & talking rubbish! :S