Quote Originally Posted by admin
Your image is a GIF Image, renamed to watermark.jpg

Open the file in text editor, you will see GIF89 at the start of the file, that is the file is a GIF image.
Yeah you are right, I did that so I could have transparency around the edges.

Here is a file that is a Jpeg and I can not get it to work.

http://www.christmaslightshowvideos.com/26.jpg