The program creates the watermark for you. I feed it the pics and it does the hard work.
....I have a master photo folder of all of my digital images, and I just merely copied them into folder used by the program. It thumbnails, sizes, and watermarks them on it's own. I just picked the design, told it what I wanted and did not to display. It then compiles the jpgs, html and all for you and even uploads it to your website. All I had to do was change the "linking" url in my menu and that was it.