1) Watermarks are completely circumvented via RSS. There is a direct link to the full sized jpg files without image compression. It looks like this in firefox:
Media files
http://www.mydomain.com/zenphoto/my-amazing-artwork.jpg (JPEG Picture, 8.4 MB)
I tried what I could but cannot figure out how to stop it form writing this in the RSS feed. Perhaps there is a simple way to stop this in htaccess? The media toggle doesn't seem to work either.
I'm using 1.4.0.3 and soon to be upgrading because of the hack attacks.