Watermark does not show up in FP 2000.

[walker11]

I am trying to put a graphic in as a watermark to use as my background so that it doesn't keep repeating. When i go to page properties and go to the background tab the watermark checkbox is grayed out. I can make it active by first selecting the background checkbox, browsing to the image that i want the watermark to be, and then deselecting the background checkbox leaving only the watermark one selected. When I select ok the image does not show up on the page and when i go back into the background tab the image that i browsed to no longer is shows up either.

Is there a step that I am missing? Or does anyone have any suggestions or other ideas besides watermarks on how I can set this image in the "permanent background?"

Thanks!