Open the image. (The original size in the example is 3264 x 2448 )

• RIGHT CLICK the image title bar > select "Duplicate..." Don't worry about the name...leave as "...copy.jpg" Click OK.
• CLOSE THE ORIGINAL IMAGE
  
  

Resize the Image

• On the Menu Bar, click on Image > Resize > Image Size...

• "Constrain Proportions" & "Resample Image" should be checked. Set the Width or the Height according to the format of the image. I recommend these general settings: HORIZONTALS - 800-900 width maximum and VERTICALS - 700 height maximum. Set one...the other is automatic. The Resample Method can be left on Bicubic. Click OK when your thru.
  
  

On the Menu Bar, click File > "Save For Web..."

• Use the Preset Box - set to JPEG High. This level of compression will not affect the way your photos display on the web. No need to go higher...all you end up doing is increasing the file size, but not any apparent image quality. Feel free to experiment with this setting. DO NOT go above 80. You will have a file size too big to upload. 250kb per image is your max. The compressed version shows the new image size below the preview window. Try to stay below 100kb on an 800x600 image. The watermark in the example is the white one, set to 30% opacity.
• Click OK.
• Name and Save the file. The filename can have NO SPACES or unusual characters. If need be, to make a space between words, use the "underscore". ie: my_photo_01.jpg. All lowercase letters are prefered.

Click on: FILE > NEW -

• In the "New" Dialogue Box: Use Preset 800x600, set Background color to Transparent.
• Click OK

• Click on the canvas and enter text - for this example "watermark",
• Then change the brush color to white, click in the canvas again and enter the text again. It will be hardly visible on the transparent background.
• Click on the Text tool, wait for the flyout and then select Horiz. Type Tool.
• Click on the canvas again and enter the same text,
• Then change your brush color to black and click in the canvas again and enter the text again.

You now have four layers to this image. They all say the same thing, two in black, two in white, two vertical, two horizontal. You need to have the layers palette displayed (on the Menu Bar, click Window > check off "Layers") to see this. It's the lower right corner. RIGHT CLICK the lowest layer (this should be the first entry that you made), then select "Rename Layer... " , and rename the layer so that you can identify it. Do this for each layer. Save the image as a PSD file. DO NOT FLATTEN THE IMAGE...YOU NEED TO PRESERVE THE FOUR LAYERS...THEY ARE YOUR WATERMARKS.

ADDITIONAL NOTE: To add the "©" symbol to your watermark, place your cursor where you wish to insert it, then press and hold the ALT key and input the numbers 0169 USING THE NUMBER PAD on your keyboard. This only works if you use the NUMBER PAD. This works with any font.
Laptop users, without a number pad, can open Character Map (Start>All Programs>
Accesories>System Tools>Character Map) select the font that you are using from the dropdown menu, click on the © symbol, click select and then click copy. This copies it to the Clipboard. Return to Elements and paste the symbol at the insertion point. (CTRL + V on your keyboard, or on the Menu Bar - Edit>Paste, or RIGHT click and select paste)

HOW TO WATERMARK AN IMAGE:

• At this point you should be resizing a COPY of an image, getting it ready for your gallery. Do this step AFTER you resize it and BEORE you "Save for Web"
• Open the image that is your watermark.
• With the watermark image active, click on the layer that you want. ( in the layers palette...you named them all so that they are easily identifiable)
• Drag this layer onto the image you want to watermark. By default, this makes a copy of the layer in the second image, leaving the layer intact in the first image so that it usable over and over.
• Select the Move tool and move the watermark to where you want it.
• If necessary, resize it. On the Menu Bar click "Image" >Transform > Free Transform.
• A bounding box will then surround the watermark. Be sure that "constrain proportions" is checked. That way the watermark will size in proportion and not distort. Grab a CORNER and resize to taste.
• Set the opacity of the watermark if you do not want it as a hard, solid color. Use the opacity slider in the layers palette.