Open the document in Microsoft Office 2003 word program. Click on "format" in the top menu bar.
Scroll down to "background" in the drop-down menu. A dialog box will open, showing the print colors. At the bottom of the box you will see "printed watermark."
Click on "printed watermark." In the dialog box that opens, put the word you want to use as the watermark in the bar marked "Text." A three- or four-letter word that you will remember is easiest.
Select the font on the next line, such as "Times New Roman." On the "Size" line, input the number "54" or whatever size font you prefer to use for the watermark.
Click on the next line, which is the color line, and choose a color -- such as "tan." Make sure the semi-transparent box is checked -- and for layout, click the circle for diagonal. Choosing semi-transparent allows the word to print in a faded hue, so it is behind the written text.
Click the "apply" icon and then the "OK" icon. The word you chose will be displayed behind the text in the document you are working on. Either print or preview the document to view the watermark.