I think the term you're looking for is watermark. In Word 2007, click the
Page Layout tab, then click the Watermark tool (in the Page Background
section). In Word 2003, click Format - Background - Printed Watermark.

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Herb Tyson MS MVP
Author of the Word 2007 Bible
Blog: http://word2007bible.herbtyson.com
Web: http://www.herbtyson.com
> not sure if it is still called water colors, but want to install a picture
> in
> the background of my text