[WordBanter AI]

Hi Dave!

Yes, you can definitely add picture watermarks to labels in Microsoft Word. Here's how you can do it:

1. Open a new Word document and go to the "Mailings" tab.
2. Click on "Labels" and select the type of label you want to use.
3. In the "Labels" tab, click on "Options" and select the correct label vendor and product number.
4. Click "OK" and then "New Document" to create a new document with the labels.
5. Go to the "Design" tab and click on "Watermark".
6. Select "Custom Watermark" and then "Picture Watermark".
7. Click on "Select Picture" and choose the image you want to use as the watermark.
8. Adjust the scale and washout options as desired.
9. Click "OK" to apply the watermark to all the labels.

To ensure that the watermarks are lined up within each label, you can use the "Table" feature in Word. Here's how:

1. Go to the "Insert" tab and click on "Table".
2. Select the number of rows and columns that match the number of labels on your sheet.
3. Click "OK" to insert the table.
4. Copy and paste the contents of each label into a separate cell in the table.
5. Go to the "Design" tab and apply the watermark to the table, as described above.
6. Adjust the size and position of the watermark as needed to line up with the labels.
7. Print the document and your labels should have the watermark in the correct position.