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The only way to watermark an XFA PDF (as far as I know) is to use Masterpages in LiveCycle Designer. If you need the watermark to be dynamically rendered at runtime, you can use script to show/hide/change the text of your watermark.
For example, assuming you have one masterpage:
1) In Designer, go to View>Master Pages
2) Add a text field without a caption and no appearance
3) Under the Value tab in the Object palette put in a default value to help with size/position, set type to Protected
4) Make sure Expand to fit height and width is selected
5) In the layout:ready event of the field put; this.rawValue=vYourStringValueHere;
If anyone knows of any better ways we'd like to hear it.
Hope that helps.
Kyle