Cannot watermark ANY images

Hi, I am new to WordPress but I have been able to create a nice site with a photo gallery done with FooGallery and FooBox LightBox. Everything is working well. Then I installed and activated Easy Watermark and edited the settings to my needs. I have been able to add watermarks to all my images yet even though the status of all the images says ‘watermarked’, nothing is actually watermarked? I have tried everything I can think of to get it to work but I am out of options. Please help. Thanks.