Here is a picture with the watermark applied. I used Photoshop CS3 following essentially the same exact steps. The only difference is that Photoshop CS3 doesn't have an Artwork and Effects palatte. It is done by going to Filter>Stylize>Emboss. The rest of the steps are the same. As in all things Photoshop (CS3 and Elements), there are at least three different ways to accomplish anything. You could do something similar and more quickly within the photo document by adding a type layer, typing text in white, and changing the opacity of the type layer without rasterizing at all. That is the quickest way to put a "watermark" on the image, but it's not embossed. Just flatten your image when you are done and save it as a separate document so that your original photo is left untouched. It really depends on how fancy you want to be. Having a separate document is nice so you don't have to create your watermark a million times, but an even better way is to make your watermark a brush which is saved with Photoshop and does not need to be opened as a document, just apply the brush (essentially like a stamp). But that's a tutorial for another day!
