Watermark appears ahead of text

[Milind]

Like in-line graphics behave, you add text in earlier paras, the picture
moves ahead, whenever I insert a watermark, it appears on the 2nd blank page.
If I put text on the 2nd page also, it moves to third page. If the first page
has 3-4 lines blank at the bottom, the watermark's small portion gets visible
and rest I don't know where it hides. [I have a picture of the word
"Confidential"]. I tried using horizontal version also, but same result. What
is happening? Any ideas?

 

[Suzanne S. Barnhill]

This suggests that you have not inserted a "watermark," which is a graphic
anchored to the header, which will repeat on every page; see
http://sbarnhill.mvps.org/WordFAQs/AnchorToHeader.htm. If you have Word 2002
or 2003, you can use Format | Background | Printed Watermark. For previous
versions, see "HOW TO: Create a Watermark in Word 97 and in Microsoft Word
2000" at http://support.microsoft.com/?kbid=211324. In Word 2007, Watermark
is in the Page Background group on the Page Layout tab of the Ribbon.