http://wordpress.org/support/forum/10
So, awhile back I found the NextGen gallery plugin. Thought it was cool, downloaded, unzipped, etc. I was/am particularly interested in the watermarking feature. I uploaded a "test photo" - an old photo that didn't mean anything to me - just to test some of the features, learn about the plugin, and so forth - and I really liked it. At the time, in order to test the watermark plugin, I typed in a bit of text, and it worked just fine.
Earlier this week, armed with several jpg photos, I logged in and uploaded those photos to Nextgen. I also uploaded my website logo, a b&w GIF. I went to the options-watermark page and attempted to change to the "use image as watermark".
However, it seems that watermark preview is stuck on the original "test photo", including the text watermark I added. I'm using v.98. This is not super critical, as I can add the watermarks offline and then upload them, but I'm tossing it out so that it can be improved in future releases. Other than this one experience, I have really liked what I've seen in NextGen and I can't wait for the next release.