watermark

how do you create a water mark??

everytime i do i get a white block around my text.

i have selected transparent for the back ground.

i use photoshop CS3.

if someone has a step by step to do this please let me know, including the file type that works best.

thank you for any info that pushes me in the right direction

http://forum.princereunion.com/gallery3/index.php/Reunion2008/IMG_0400.JPG

i think this link works.

thats what i get when i create and add a watermark

i attached the watermark file i use

ok then it must be the server i have it running on.

now to hunt down whats wrong with it.