I installed and think the settings are correct. However the watermark is not showing up.
Automatic watermarking: on
Enable watermark for: everything except full
Automatic frontend watermarking: on
Plugin deactivation: off
Watermark position: center
Watermark image: png
Image protection: all boxes checked (right click not disabled)
Sample url http://skeeterz71.com/jvcaltex/feature-gallery-1/