hi,
I have run into an issue where I see thumbail watermarks in dyn. albums despite the fact they are disabled for thumbs generally. Physical albums work fine though. Can you replicate the problem?
Please check:
www.dev.bregler.net/gallery
and
www.dev.bregler.net/gallery/China.alb
my guess is that you've been turning off watermarks for each album, and not just turning them off in general. But that's just a shot in the dark. It appears they're off everywhere else. Not sure if you can set them specific for a dynamic album, I'll take a look. Hope I could help some.
Edit:
On second look, it appears most of your images thumbs have the watermark on them.
Are you using default thumbs? Or are you using custom thumbs?