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Using CFIMAGE to Watermark an Image  
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  1. 2 lines in which I basically give both images a name. The reason the watermark is a png is I want to have the ability to use alpha channels.
    <cfimage source="img_2566.jpg" name="image">
    <cfimage source="watermark.png" name="watermark">
  2. Next paste the watermark onto the image at 0x and 0y. I cheated and created the images the same size, but you could easily read the image info get the size then calculate where you want the watermark to be.
    <cfset ImagePaste(image, watermark, 0, 0)>
  3. The last line writes the image to the browser in the format of a jpeg.
    <cfimage source="#image#" action="writeToBrowser" format="jpg">
  4. The Final Code should look like this
    <cfimage source="img_2566.jpg" name="image">
    <cfimage source="watermark.png" name="watermark">
    <cfset ImagePaste(image, watermark, 0, 0)>
    <cfimage source="#image#" action="writeToBrowser" format="jpg">

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