Hmm, yes... I noticed that the "on-the-fly" watermarking isn't good for performance. Going to modify this and release a version that watermarks the uploaded image so the script doesn't have to watermark every image everytime someone requests it.
It will probably be release tonight (in 5h)
For you with problems, here are something to notice:
* It's been tested and developed for version 3.0.3
* watermark.PNG and watermark.png is two diffrent filenames. On unixsystem watermark.PNG will
NOT work.
* Live demo can be seen at *WARNING, ADULT SITE*
www.synd.nu