The Watermark feature in later version of Word anchors the graphic in the
header, so you would turn on First Page Header (File | Page Setup, Layout
tab), and then view Headers/Footers and delete the graphic from the regular
Header.
If you want it to appear on just the first page, enable "Different first
page" (Layout tab of Page Setup) and anchor it to just the First Page
Header. Otherwise, anchor it to text on a specific page.
