Index: watermark.module
===================================================================
RCS file: /cvs/drupal-contrib/contributions/modules/watermark/watermark.module,v
retrieving revision 1.5.2.6
diff -u -r1.5.2.6 watermark.module
--- watermark.module	17 May 2008 20:38:05 -0000	1.5.2.6
+++ watermark.module	8 Jul 2008 15:53:19 -0000
@@ -407,7 +407,7 @@
     watchdog(WATERMARK_WATCHDOG, $msg, WATCHDOG_ERROR);
   }
   // create an image of the same type!
-  else if (!$img_create_func($im, $image_path)) {
+  else if (!_watermark_create_image($im, $image_path, $img_create_func)) {
     $msg = t('Failed to save merged image.');
     drupal_set_message($msg, 'error');
     watchdog(WATERMARK_WATCHDOG, $msg, WATCHDOG_ERROR);
@@ -422,6 +422,14 @@
   return $status;
 }
 
+function _watermark_create_image($im, $image_path, $img_create_func) {
+  if ($img_create_func == 'imagejpeg')
+    return $img_create_func($im, $image_path, variable_get('image_jpeg_quality', 80));
+  else
+    return $img_create_fucn($im, $image_path);
+}
+
+
 function _watermark_make_image($file) {
 
   if (!file_exists($file)) {