Watermark not working

[cjobson]

I have just put in the configure settings so that when I upload photos to my gallery it will automatically add the watermark instead of me having to manually add it on photoshop.
I uploaded the watermark onto the FTP and then put the path (which is LilyAllenFans.net/gallery/images/newtag.png) and put the transparency at 50 which won't matter because I would still be able to see it. Ticked boxes 'Watermark images' and 'Watermark custom thumbs (movie, audio, document)', I put the place as bottom left, and to watermark both files.
I saved these settings, went to Admin Tools and did 'Delete original image backup for watermarked images', this didn't seem to do anything, so I deleted the files and then re-uploaded them to the FTP server and then onto the website, still didn't work.
I have also re-saved the file as a PNG on photoshop, as I saw that this can sometimes be the cause but it hasn't made any difference.

[Αndré]

put the path (which is LilyAllenFans.net/gallery/images/newtag.png)

This path is probably invalid. Instead, try

images/newtag.png

Keep in mind that the watermark will be applied just to new uploads. If you want to apply it to existing files, you need to run the admin tools.