I've never tried watermarks in PHP, done image uploads with resizing and caching etc. I found using a .htaccess file to rewrite the url can tidy things up a bit... instead of having www.test.com/page.php?param=1&something=hello you could have www.test.com/page/1/hello. I've seen it used a few time's... make's the url a lot more friendly
edit: Ignore the links... it thinks they're real :S
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