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We have got a problem with the Watermark in Magento 1.7
We have put the settings below System / Configuration / Design / Watermarks, like attached image.
The problem is that the “Base image watermark” is being used on all images, so it is used on the big, the small and the thumbnail images.
Also when we remove the settings at the small and the thumbnail watermark images, still the big watermark is placed at all the the image sizes.
So a bug?