A watermark is a faded picture that lies behind the text of a document. It might say “Do not copy” or “Confidential” or anything you like. In microsoft word you can easily add a watermark to your document.
You can watch this video on how to add a watermark to a word 2007 document or you can read a full tutorial with screenshots at Add a Watermark to Word 2007.
Please note that if you have a slow internet connection then press play for a second, then press pause to load the video. Then it should be fine to watch without jumping and stalling.
If you are using Microsoft word 2007 you will notice that it is considerably different to the old word 2003. For starters the entire top menu does not look like the old one, and the menu is now called a ribbon menu. Each tab in Word 2007 is now called a ribbon. So for example, if you choose the Home ribbon you will see all the menu items that fall under this ribbon. Because of the huge difference between Word 2003 and Word 2007, we now need a whole new entire set of Word Tips and tricks to suit 2007.