Watermark Question

The watermark for 2.1 accepts a .gif image but will not show it, i manually upload a watermark.jpg and the watermark .jpg will show up again. I have tested this alot and the .gif will not show no matter what i do. Can you give advice as what part of the script needs to be changed and the code?
Also as already stated by a few people already the profile photo doent work, it wont accept any jpg image, is this a oversight that the coding was switch for each others?

It seems you are using old include/player.inc

Check the file and see if you are using watermark.gif or watermark.jpg

The above is exactly right! It Works Now. Although Even if its a .gif its not fully transparent, must be that i just use windows paint.