>How can I make reports with watermark on it

If you can get your hands on FlashParse, the freeware tool from Flash Creative Management, then you can make HTML templates for your reports and merge your report data into the templates for result HTML. Then you can use any HTML you want (like IE's background "watermark" feature) to do watermarking.

You also get the side-benefit of having a .html file you can save or email or whatever, and the original data can't be hacked by the user. Compare that to a VFP-based report solution....

Search the web for the download, it's around somewhere. I like it a lot and use it exclusively instead of the VFP report writer.