Running Gallery 3.01.12 on DNN 4.08.00.
When I use a watermark image, the watermark is applied correctly, but the whole image looks "washed out," or has a milky appearance. Basically, it looks like it has a gray mask over the whole image, which make the images look cheap and amateurish.
I have tried both .png and .gif files with transparent backgrounds, with the same result.
I can't have this on a site for professional photographer.