So you have some pictures on your blog you want to protect with a watermark. Watermarking your photos is pretty easy. When you upload photos directly to your blog they are are stored in your Picasa account automatically. I upload them first to Picasa and watermark them before I add them to my blog. Here is how you do it.
1. Upload photo to selected album in Picasa
2. Click on picture you want to edit
3. Click "Edit" in Picsa, a small drop down menu should then appear.
4. Click, Edit in Picnik. Another window should open loading Picnik.
5. Click the "Create" tab and then the "Text" tab near the top.
6. Type the text you want to display on your image in the box in the upper left hand corner, click the "Add" button. From here you can play with font style and text color, along with size and fading
7. Click save to my album. I like to save it as "A New Copy" just in case I want to do further editing.