@Dr.osamA:
Did you test the settings via preview first? Is the watermark rendered on the sample image?
Try the steps below so we can find out why your attachments aren't displayed.
@TEMPESTADE, inigo:
Is it possible that you don't have the GD lib installed?
To all others where the attachment doesn't show:
You can upload the testattachments.php file from this post into your forum root dir.
Then navigate to the file via browser and add the parameter i1 to it so it looks like this:
http://someforum.tld/forum/testattachments.php?i1=13
Replace 13 with any image id which is big enough so the watermark should be displayed!
Now if any errors occur, the script will output them, other than the attachment.php which disables error reporting completely. This way it's easier for me to pinpoint the problem.