Discussion on:

Add a watermark to your Word 2007 document

how to add a watermark to document

When I use the built in watermarks I can put one in one section only without problems.If I choose a custom watermark, either picture or text, it will be displayed on all pages, disregarding the section breaks/header & footer settings that worked like a charm with the built in ones.

What am I missing, or is this in fact a tiny, God forbid, bug?

While it is a commercial program, StampIt for Word is a much easier way to add watermarks and other identification to Word documents. And it works for all versions of Word from 2000 to 2007.