This was mentioned in another bug thread, Images with watermarks
and there is a thread in the PhotoPro suggestions http://www.photopost.com/forum/showthread.php?p=1186581
requesting a fix for this problem.
To illustrate the problem with permanent watermarks, see this test add which has six pictures of varying upload sizes (all standard sizes users might upload) http://test.thebeachcats.com/classif...hp?product=332
The watermark used in that case is 400 pixels wide, but on the resulting supersized and resized pictures in the ad the watermark varies from invisible to very large. I didn't bother uploading a picture narrower than 400 pixels, it would look even worse.
It seems to me there is a simple fix for this problem. Since we don't know the size of the actual picture being uploaded, don't base the size of the watermark on the true original, but on the supersize dimension that we can control. That way the watermark dimension will remain the same size no matter what size the user decides to upload. Even better would be to simply have the watermark image retain it's true size, and allow two watermarks, one for the resized and one for the supersized picture.
Please, the watermarks are very important. Your customers that are interested in this problem realize the value of branding the photos in the classifieds and photo albums, so that when people use them in forums or download the pictures from our site, it's advertising for us.
Thanks, please consider working on this.