Hi,

You need to upload an image that is at least the large image size. From the uploaded image you generate the large and medium image, and finally reduce the size of the uploaded image to small. That needs three clicks.
The image sizes for small and medium are defined in Zen-Cart, the max size of the large image is defined in the IM settings and can be changed through the admin interface.
Watermarking (see image_manager.txt) is an optional part of the process of copying/resizing the image.

Boudewijn