I forgot to post the link last night for the tutorial by Matt Kloskowski that I used to create my watermark in photoshop. I really like it and it was easy to follow. Now to create an action to automate sizing of photos the web and putting the watermark on it. http://www.layersmagazine.com/subtle-watermarking.html
Layers Magazine is also a great resource for other information and tips on all of Adobe Creative Suite, not just photoshop. Also check out Matt’s Lightroom Killer Tips blog.
Watermark How-to March 11, 2010
New Watermark March 9, 2010
Working on watermark tonight and skin smoothing w/out a plug-in. Here’s the result:

