is it possible to overlay an image with another transparent so when someone drags the image to save it it saves the transparant image instead of the actual picture? this I think would stop most image theft... Along with the lil javascript thing to keep right click off...
Yes, it's called watermarking. Check the mod section.
However, the current mods do the watermark on the fly, which means a non-watermarked version is available if a user knows the URI of the photo.