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Insert a Watermark in Word

In a Word document, you can add a watermark to each page. A watermark is a pale image or set of words that appears behind text on each page. To create a text watermark choose Format-->Background-->Printed Watermark. You see the Printed Watermark dialog box. Next, click the Text Watermark option button and type a word or two in the Text text box (or choose an AutoText entry from the drop-down list). Choose a font, size, color, and layout for the words. If you deselect the Semitransparent check box, you do so at your peril because the watermark words may be too dark on the page. Click OK in the Printed Watermark dialog box to see your watermark. To tinker with it or remove it, choose Format-->Background-->Printed Watermark and change the settings in the Printed Watermark dialog box. To remove the watermark, click the No Watermark option button.
For more information like this, get a copy of Windows XP Gigabook For Dummies, by Peter Weverka et al.

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