The font I used for this tutorial is Comic Sans MS.  But you can use any font you like.  Thicker fonts work best for this tutorial.  The thinner fonts don't show up as well.

If you need some preset shapes you can download a file and put it in your preset shapes folder.  This file includes hearts, stars, arrows, etc.  Click Here

1. Start off by opening a new image 100 x 100 pixels.

2. Click on your Preset Shape Tool and use the following settings.  You can use whichever shape you like.  For this tutorial I chose to use a star.

 3. While holding shift down (to keep the shape) draw your shape on your canvas.

4. Click on your text tool and use the following settings.  Depending on the font you choose you might have to increase or decrease the size.  Enter in your text, keep in mind that less text is better.  If you have too much it won't show up very well.

5. With your mover tool move the text to the middle of your shape.  Make sure that it stays inside of the border.

6. Click on Layers--->Merge--->Merge Visible.

7. Click on Effects--->Texture Effects--->Emboss.  It should now look like this.

8. Next you'll want to export your watermark as a picture tube.  Click on File--->Export--->Picture Tube.  Use the following settings, and name your watermark whatever you would like.  When exporting a picture tube always make sure your cell width and the step size are the same number.

That's it!  Piece of cake!