Sorry for replying to this so late. The watermark image works the way you said, but for some reason it displays white as transparent. It will display a low value of white, though. Anything over 240,240,240 is transparent.
I don't use the screensaver anymore because after I put the machine to sleep (no screensaver running) when I power it back up the screensaver will be on, and pressing a button will cancel back to the front end but the controls don't work and I have to restart MaLa. I remedied this by using "AVI screensaver" which does pretty much the same thing.
Jasonbar- I thought it would be cool to have my machine's logo display during the attract videos. It turned out to be more annoying than cool, though.
And thanks for helping, Loadman!