I FIGURED IT OUT!!!!
The actual image dimensions have to be LARGER than the large image size dimensions set in the ih2 settings!!! (In the case of the category image, the actual image sizes of other images on the server were much bigger, so it was getting processed - i was actually wrong in saying that the images were all the same size - i was looking at the sizes of the PROCCESSED images.)
Ok, this prompts me for the back story in case anyone else ever runs into this too:
When i started using zen cart i was already optimizing my images and processing them out of photoshop at the large image dimensions i wanted. So, one of the reasons i installed IH2 was to use the watermarking feature. Well, needless to say, i could never get it to work on the large images and i made a post on here and nobody could figure it out. I figured i messed up something in the core code that i just could - not - find. So i gave up for a while out of frustration.
SO! All i was looking for was to have the large images watermarked, but as it turns out, if an image's actual dimensions are equal to or below the maximum pixel size for width and height in the settings, it will not get processed - even if you want it to put a watermark on it. Since it sees no need to process the image because it is already at the correct pixels, the watermarking never happened on the large images.
Hope that all made sense!
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