Gizmo, no PP do it on the fly. If you click a picture you always get a script who display the image. If you smart enough to find the deep link you can get the unmarked picture (you have to use .htaccess to block this). All your pictures stay as original without modification.
While viewing the picture a 24 bit alpha png picture will be merged at the place you define in setup. This work with gd2 or imagemagik.
This way dont wast webspace for double picture with and without mark.