No, it doesn't
A watermark is a pale graphic usually (but not necessarily) set in the
header of the document. If you are using a graphic as a watermark, then if
you place it over your image, then what about its background? That will
obscure the picture.
If you use a text watermark (essentially Word Art) the background is
transparent and you can place the text over your foreground graphic (but
only if the images are in the same text layer, so you need to place the
'watermark' on those pages and not in the page header.
Having your foreground images floating or (worse) with a wrapping option is
going to add to the complications.
Ultimately Word is not a desktop Publishing application where you have much
more control over the elements that make up the document.
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Graham Mayor - Word MVP
My web site
www.gmayor.com
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