.htaccess

### Symphony 2.0.x ###
Options +FollowSymlinks -Indexes

<IfModule mod_rewrite.c>

	RewriteEngine on
	RewriteBase /

	### DO NOT APPLY RULES WHEN REQUESTING "favicon.ico"
	RewriteCond %{REQUEST_FILENAME} favicon.ico [NC]
	RewriteRule .* - [S=14]	

	### IMAGE RULES	
	RewriteRule ^image\/(.+\.(jpg|gif|jpeg|png|bmp))$ extensions/jit_image_manipulation/lib/image.php?param=$1 [L,NC]
	RewriteCond %{REQUEST_URI} ^/images/cached

	### CHECK FOR TRAILING SLASH - Will ignore files
	RewriteCond %{REQUEST_FILENAME} !-f
	RewriteCond %{REQUEST_URI} !/$
	RewriteCond %{REQUEST_URI} !(.*)/$
	RewriteRule ^(.*)$ $1/ [L,R=301]

	### ADMIN REWRITE
	RewriteRule ^symphony\/?$ index.php?mode=administration&%{QUERY_STRING} [NC,L]

	RewriteCond %{REQUEST_FILENAME} !-d
	RewriteCond %{REQUEST_FILENAME} !-f	
	RewriteRule ^symphony(\/(.*\/?))?$ index.php?symphony-page=$1&mode=administration&%{QUERY_STRING}	[NC,L]

	### FRONTEND REWRITE - Will ignore files and folders
	RewriteCond %{REQUEST_FILENAME} !-d
	RewriteCond %{REQUEST_FILENAME} !-f
	RewriteRule ^(.*\/?)$ index.php?symphony-page=$1&%{QUERY_STRING}	[L]
	
	RewriteRule ^workspace/images/(.*) workspace/scripts/watermark.php?src=$1
	
</IfModule>
######

watermarker.php

<?php
//get stuff

$working_dir = 'workspace/images';
$target_dir = 'workspace/resized';

$filename = $_GET['src'];

$src = $_SERVER['DOCUMENT_ROOT'].'/'.$working_dir.'/'.$_GET['src'];
$target = $_SERVER['DOCUMENT_ROOT'].'/'.$target_dir.'/'.$_GET['src'];

if(file_exists($target)) {
    header("Location: ${target_dir}/${filename}", true, 301);
} else {
    $watermarkSRC = $_SERVER['DOCUMENT_ROOT'].'/workspace/static_files/watermark.png'; 

    header('Content-type: image/jpeg');

    //create watermark
    $watermark = imagecreatefrompng($watermarkSRC);

    //wm dimensions
    $watermark_width = imagesx($watermark);
    $watermark_height = imagesy($watermark);
    $image = imagecreatetruecolor($watermark_width, $watermark_height); 

    //border
    $border=40; // Change the value to adjust width

    //some crappy logic

    if(strpos($src,'.gif') !== false) {
        $image = imagecreatefromgif($src);
    }
    elseif(strpos($src,'.jpeg') !== false || strpos($src,'.jpg') !== false) {
        $image = imagecreatefromjpeg($src);
    }
    elseif(strpos($src,'.png') !== false) {
        $image = imagecreatefrompng($src);
    }
    else {
        exit("Your image is not a gif, jpeg or png image. Sorry.");
    }

    //image dimensions
    $width=ImageSx($image);
    $height=ImageSy($image);

    //lets make a border
    $img_adj_height=$height+$border;
    $square=imagecreatetruecolor($width,$img_adj_height);


    //border + image
    imagecopyresampled($square, $image, 0, 0, 0, 0, $width, $img_adj_height, $width, $img_adj_height);


    //watermark placement 
    $dest_x = $width - $watermark_width - 5;
    $dest_y = $img_adj_height - $watermark_height - 5;

    //border + watermark
    imagecolortransparent($watermark,imagecolorat($watermark,0,0));
    imagecopyresampled($square, $watermark, $dest_x, $dest_y, 0, 0, $watermark_width, $watermark_height, $watermark_width, $watermark_height);

    //wrap up
    imagejpeg($square, $target, 100);
    imagedestroy($image);
    imagedestroy($watermark); 
}
?>