Unchecking exclude from watermark not working:
Hi there, thanks for your message.
Have you checked your permalinks are enabled, by visiting Settings > Permalinks and ensuring the default option is not selected? The plugin will only work when permalinks are enabled.
Yes, permalinks were set to "post name".
You need to ensure that media is 'attached' to a post, you can do this even to drafts posts/pages, see the example http://codex.wordpress.org/File:managefiles.png are all 'uploaded to' a post.
Closing due to inactivity, please open a new thread if you require additional support
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