[OS X TeX] watermarks

[Luís Fernando Sequeira]

Are you compiling this from TeXShop? From Terminal? Which command/engine are you using?

You seem to be compiling with pdflatex.
You are using pstricks, but I see no mention of either running simpdftex, or of invoking something to deal with pstricks inside pdflatex (like pdftricks, or auto-pst-pdf). 

Could that be the issue?

FWIW, now that you updated your TeXLive, it may be time to start using a 21st century TeX engine and compile your document with xelatex or lualatex. Just sayin'...

Regards

Luís Sequeira

pS: I am in digest mode, so if you like some more immediate response, feel free to cc: me directly