On the Script-Tutorials blog today there's a new tutorial posted showing you how to easily add watermarks to your images dynamically, either as a part of a cache generation or on upload.
I will show you how to use GD library. And, main task today is adding watermark to image and generate result as PNG image into browser. We will using PHP and GD library. This is nice library to work with images at server side. Also (as additional tasks) I will draw little frame over image and will draw some text. Between, you can use this method (of adding watermarks in realtime) to protect original photos.
Full code for the script is included in the post, showing the combining of two images into the one finished product. The code is also available for download if you'd like to get hacking right away.