Creating a Watermark Image Behind Your Text in Word
In Office 2007, open the tab "Page Layout"
Left click on the down arrow below "Watermark" in the menu
Choose "Custom Watermark"
In the window that opens, choose "Picture watermark", then choose "Select Picture," then after choosing your photo, click on "Insert"
Beside "Scale:," choose "auto" which will give you the desired effect in your document.
Left click on "Apply" to see how the watermark looks in your document.
Left Click "OK" to complete the operation.
You can now type over the watermark in your document as it will remain in the background.