watermark trouble.

i have zc 1.3.8a, ih2 and jqlightbox installed (among many other mods).

all of my images are in the /images folder.

i uploaded all of my images via ftp using the zc naming convention name.jpg, name_01.jpb, name_02.jpg, etc.

i have watermark_MED.png in the /images/medium folder
I have watermark_LRG.png in the /images/large folder

bmz_cache and images folder match permissions.

watermark medium images and large images set to yes

when i go to ih2 manager, it shows the product default size, medium size and large size images with the watermark.

when i check preview it shows the stock image in each file type and size with the watermark.

but... when i view the image in the cart, the watermark is not there???

what did i miss?

do i have to copy all of the images in the /images folder into the images/large folder and images/medium folder?

thanks!