diff --git a/modules/watermark/controllers/watermark.php b/modules/watermark/controllers/watermark.php
index 4bf90401..a23cce64 100644
--- a/modules/watermark/controllers/watermark.php
+++ b/modules/watermark/controllers/watermark.php
@@ -22,13 +22,12 @@ class Watermark_Controller extends Controller {
     $form = watermark::get_watermark_form();
     if ($form->validate()) {
         $file = $_POST["file"];
-        
-        // Format of the file is config["upload.directory"]/uploadfile-hash-filename.
-        $index = strrpos($file, "-");
-        $watermark_target = VARPATH . substr($file, strrpos($file, "-") + 1);
-        if (rename($file, $watermark_target)) {
-          module::set_var("watermark", "watermark_image_path", $watermark_target);
 
+        $pathinfo = pathinfo($file);
+        $watermark_target = $pathinfo["basename"];
+        if (copy($file, VARPATH . $watermark_target)) {
+          module::set_var("watermark", "watermark_image_path", $watermark_target);
+          unlink($file);
           $form->success = _("Watermark saved");
         } else {
           // @todo set and error message
diff --git a/modules/watermark/controllers/watermark_admin.php b/modules/watermark/controllers/watermark_admin.php
new file mode 100644
index 00000000..c6d53999
--- /dev/null
+++ b/modules/watermark/controllers/watermark_admin.php
@@ -0,0 +1,57 @@
+<?php defined("SYSPATH") or die("No direct script access.");
+/**
+ * Gallery - a web based photo album viewer and editor
+ * Copyright (C) 2000-2008 Bharat Mediratta
+ *
+ * This program is free software; you can redistribute it and/or modify
+ * it under the terms of the GNU General Public License as published by
+ * the Free Software Foundation; either version 2 of the License, or (at
+ * your option) any later version.
+ *
+ * This program is distributed in the hope that it will be useful, but
+ * WITHOUT ANY WARRANTY; without even the implied warranty of
+ * MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE.  See the GNU
+ * General Public License for more details.
+ *
+ * You should have received a copy of the GNU General Public License
+ * along with this program; if not, write to the Free Software
+ * Foundation, Inc., 51 Franklin Street - Fifth Floor, Boston, MA  02110-1301, USA.
+ */
+class Watermark_admin_Controller extends Controller {
+  public function get_form($user_id) {
+    try {
+      // @todo check for admin user
+
+      $path = module::get_var("watermark", "watermark_image_path");
+      $view = new View("watermark_position.html");
+
+      if (empty($path)) {
+        // @todo need to do something when there is no watermark
+      }
+
+      $photo = ORM::factory("item")
+        ->where("type", "photo")
+        ->find_all(1, 0)->current();
+
+      // @todo determine what to do if water mark is not set
+      // @todo caclulate the view sizes
+      $view->sample_image =  $photo->resize_url();
+      $scaleWidth = $photo->resize_width / $photo->width;
+      $scaleHeight = $photo->resize_height / $photo->height;
+      $scale = $scaleHeight < $scaleWidth ? $scaleHeight : $scaleWidth;
+
+      $imageinfo = getimagesize(VARPATH . $path);
+
+      $view->watermark_height = $imageinfo[1] * $scale;
+      $view->watermark_width = $imageinfo[0] * $scale;
+      $view->watermark_image = url::abs_file("var/" . $path);
+
+      $current_position = module::get_var("watermark", "watermark_position");
+      $view->watermark_position_form = watermark::get_watermark_postion_form($current_position);
+
+      print $view;
+    } catch (Exception $e) {
+      print $e;
+    }
+  }
+}
\ No newline at end of file
diff --git a/modules/watermark/helpers/watermark.php b/modules/watermark/helpers/watermark.php
index 73434ceb..438fbc24 100644
--- a/modules/watermark/helpers/watermark.php
+++ b/modules/watermark/helpers/watermark.php
@@ -26,4 +26,19 @@ class watermark_Core {
     $group->submit(_("Upload"));
     return $form;
   }
+
+  public static function get_watermark_postion_form($position="southeast") {
+    $form = new Forge("admin/watermark/position", "", "post");
+    $group = $form->group("watermark_position")->label(_("Update Position"));
+    $group->hidden("original_position")->value($position);
+    $group->dropdown("new_position")->label(_("Watermark Position"))
+      ->options(array("northwest",  "north",  "northeast",
+                      "west",       "center", "east",
+                      "southwest",  "south",  "southeast"))
+      ->selected("8");
+
+    $group->submit(_("Update"));
+    $group->submit(_("Reset"));
+    return $form;
+  }
 }
\ No newline at end of file
diff --git a/modules/watermark/helpers/watermark_installer.php b/modules/watermark/helpers/watermark_installer.php
index a5f07202..e06e52cf 100644
--- a/modules/watermark/helpers/watermark_installer.php
+++ b/modules/watermark/helpers/watermark_installer.php
@@ -24,7 +24,7 @@ class watermark_installer {
     if ($version == 0) {
       module::set_version("watermark", 1);
       module::set_var("watermark", "watermark_image_path", "");
-      module::set_var("watermark", "watermark_position", serialize(array()));
+      module::set_var("watermark", "watermark_position", "southeast");
     }
   }
 
diff --git a/modules/watermark/helpers/watermark_menu.php b/modules/watermark/helpers/watermark_menu.php
new file mode 100644
index 00000000..384ba9c4
--- /dev/null
+++ b/modules/watermark/helpers/watermark_menu.php
@@ -0,0 +1,34 @@
+<?php defined("SYSPATH") or die("No direct script access.");
+/**
+ * Gallery - a web based photo album viewer and editor
+ * Copyright (C) 2000-2008 Bharat Mediratta
+ *
+ * This program is free software; you can redistribute it and/or modify
+ * it under the terms of the GNU General Public License as published by
+ * the Free Software Foundation; either version 2 of the License, or (at
+ * your option) any later version.
+ *
+ * This program is distributed in the hope that it will be useful, but
+ * WITHOUT ANY WARRANTY; without even the implied warranty of
+ * MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE.  See the GNU
+ * General Public License for more details.
+ *
+ * You should have received a copy of the GNU General Public License
+ * along with this program; if not, write to the Free Software
+ * Foundation, Inc., 51 Franklin Street - Fifth Floor, Boston, MA  02110-1301, USA.
+ */
+class watermark_menu_Core {
+  // @todo this needs to get on the admin page at some point
+
+  public static function site_navigation($menu, $theme) {
+    $user = user::active();
+    if ($user->admin) {
+       Kohana::log("debug", print_r($menu, 1));
+      $menu->get("admin_menu")->append(
+        Menu::Factory("dialog")
+        ->id("watermark_position")
+        ->label(_("Set Watermark Position"))
+        ->url(url::site("admin/watermark/get_form/$user->id")));
+    }
+  }
+}
diff --git a/modules/watermark/views/watermark_position.html.php b/modules/watermark/views/watermark_position.html.php
index 566ee57b..af824ed1 100644
--- a/modules/watermark/views/watermark_position.html.php
+++ b/modules/watermark/views/watermark_position.html.php
@@ -1,7 +1,16 @@
 <? defined("SYSPATH") or die("No direct script access."); ?>
 <div id="gWatermarkAdmin">
   <div id="gTargetImage" class="droppable">
+    <img src="<?= $sample_image ?>"></img>
   </div>
-  <div id="gWaterMark" class="draggable">
+  <div id="gWaterMark">
+    <!--  This style and div is only temporary -->
+    <div style="background-color: #cccccc;">
+    <img src="<?= $watermark_image ?>" class="draggable"
+        width="<?= $watermark_width ?>"  height="<?= $watermark_height ?>" />
+    </div>
+  </div>
+  <div id="gWatermarkPostionForm" >
+  <?= $watermark_position_form ?>
   </div>
 </div>
\ No newline at end of file