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To get the best quality watermark and resultant video I prefer to size the watermark as a .png at the exact size that I want it (meaning I have to make multiple versions of the watermark if I am batch encoding to multiple frame sizes) and I add it to the bottom right of my frame with Cleaner XL 1.5. I prefer not to add the watermark as a graphical overlay on the timeline in an editing app and have the editing app output to the final frame size with the watermark on the video because that adds compression and resizing to the watermark itself which is not ideal.
You might also try Watermark Master from the same co. as Videocharge for a more inexpensive shareware solution that might work for you.
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