To create a Watermark in Word 2007:
- On the Toolbar (or Ribbon) go to the Page Layout Tab – click the arrow down beside Watermark and choose Custom Watermark. The screen below called Printed Watermark will open.
Click on Text Watermark and then choose the text of the Watermark you want. Unclick the Semi-Transparent box located at the bottom right-hand corner. I then choose a lighter colour for the Watermark so it will print lighter, but will still be visible on screen as a Watermark. (You will see the Colour choice to the left of the Semi-Transparent box). Press Apply and OK. You will now see DRAFT on screen and off.
Perhaps there is another way to fix it, but this works for me.