From the main toolbar click Project...

...which will open the Project editor module.

Click the Add button to load your source movie

We have chosen a DivX encoded video but your source file can be any supported format such as MPEG-1, MPEG-2 or any other AVI, including all MPEG-4 sub-formats, for which you have the required codecs.

Browse to the location and enter the name of the new target file that will contain your watermark.

We have chosen to encode as VCD with Custom setting to match the size of the source movie but you can encode to any supported format such as MPEG-1, MPEG-2 or any other AVI, including all MPEG-4 sub-formats, for which you have the required codecs.

Checking the Embed Text option...

...opens the Text Module in a separate window which needs to remain open during encoding.

Type in the Text to Embed.

To help position the text, enter the size of the movie that you intend to encode in the appropriate Movie Properties boxes.
The two buttons captioned Source and Target will fetch the height and width of either the source or target files as they have been set in the project.

In this example, we want the text to show in the bottom, right of each frame so we have dragged the elevator handles until we can see the bottom, right corner of the movie.

Next, click in the location where you want to position the top, left corner of your text.

Set the font size by clicking the Font button.

From the Font Dialog, pick the font, the size and set any additional attributes such as bold or italic.

If necessary, move the text to match the new font size.

Since our source movie is very dark, we want to use a very light font color with a light color drop shadow.

Use the color dialog to pick your text and drop shadow colors.

In the below illustration we changed the background color from white to black in order to make the text stand out better.

Now we're ready to encode the text into our new movie. Click the Start button to begin.

Because we set the MPEG properties as Custom, after clicking the Start button, we see the custom properties window. Here we want to set the height and width to match the source and the encoding method to Best Quality.

Clicking OK will start encoding. During the encoding session you can see your embedded text in the preview pane.

Your watermark will be encoded into each frame of the new movie.