Are you getting a box around your "transparent" png when you attempt to use your watermark in PhotoShop Elements?
When you open the PS Elements, is the Auto Select Layer option selected (upper left-hand corner of window). Try unchecking that box the box should disappear!!
IF YOU DONT HAVE ANY PHOTO EDITING SOFTWARE THE THIS FREE program called GIMP will work:
http://www.gimp. org/Here are the instructions:
After you have Downloaded the GIMP program, open the program from the
icon on your desktop.
A box will appear that has different tools in it. At the very top click
FILE...choose OPEN.
Open your image that you wish to watermark.
Once you open your image, it will appear in it's own new window. In the
new window of your image, Click LAYER.
Choose NEW LAYER. A box will open. Make sure the Transparency option
is checked (it should already be). Click OK.
Now, go back to your GIMP tool box (the first box that opened). Click
FILE. Click OPEN. Choose your watermark and OPEN it. A new window with
your watermark will open. It should appear somewhat transparent and
have a grayish grid behind it. Click EDIT, choose COPY. You may now
close this window.
Go to the window that has your image in it, Click EDIT, choose PASTE.
Your watermark may or may not be too large. IF it is..it's
okay...here' s how to fix that...
Over in your GIMP tool box window there is a bow with an arrow pointing
to the center. If you mouse over it, it will say SCALE TOOL. (it is in
the 3rd row from the top, 4th from the left). Click the Scale Tool,
then click on your image. A new Box will open, that's okay..just ignore
it. Drag your mouse to re-size your watermark until it looks to be the
right size.
The tool that looks like a cross is your move button. Click that icon
and select MOVE ACTIVE LAYER. You can move your watermark into whatever
position you wish.
Once satisfied, click LAYER. Choose ANCHOR LAYER.
Go to FILE, click SAVE. A box will pop up saying it can't handle
transparency, click EXPORT, another box will open, click SAVE.
You are DONE!