You're better off approaching this in Illustrator (or any graphics app)
rather than Word.
Trial and error is usually the quickest method: create a set of files
spanning a range of settings -- experiment with HSB and with contrast --
until you home in on settings that work. Also try GIF rather than JPG.
> We now have a color laser printer and want to print our letterheads using
> our
[quoted text clipped - 11 lines]
> I suppose the question is, how do I make the washedout watermark slightly
> more intense?
View | Header and Footer. Click on the logo, which will display the Picture
toolbar, and choose Format Picture. On the Picture tab, adjust the
brightness and contrast to give the desired result (or use the toolbar
controls for brightness and contrast). In a test here, "Washout" sets the
picture to 85% brightness and 15'% contrast (instead of the default 50% for
each), so perhaps less brightness and more contrast will give a better
effect.

Signature
Suzanne S. Barnhill
Microsoft MVP (Word)
Words into Type
Fairhope, Alabama USA
Word MVP FAQ site: http://word.mvps.org
Email cannot be acknowledged; please post all follow-ups to the newsgroup so
all may benefit.
> We now have a color laser printer and want to print our letterheads using our
> "traditional" dark blue text with a light blue logo as a watermark.
[quoted text clipped - 10 lines]
> I suppose the question is, how do I make the washedout watermark slightly
> more intense?
Ashpoint - 07 Jun 2006 05:36 GMT
That did it Suzanne. The trick was to understand that the watermark is in
the Header/Footer.
Best regards,
Michael

Signature
Ashpoint
> View | Header and Footer. Click on the logo, which will display the Picture
> toolbar, and choose Format Picture. On the Picture tab, adjust the
[quoted text clipped - 19 lines]
> > I suppose the question is, how do I make the washedout watermark slightly
> > more intense?
Suzanne S. Barnhill - 07 Jun 2006 15:30 GMT
Yes, a watermark is just a graphic anchored to the header and sent behind
text. The Format | Background | Printed Watermark command in Word 2002/2003
makes it much easier to insert a watermark but obscures its nature, making
it more difficult for most users to edit or remove watermarks.

Signature
Suzanne S. Barnhill
Microsoft MVP (Word)
Words into Type
Fairhope, Alabama USA
Word MVP FAQ site: http://word.mvps.org
Email cannot be acknowledged; please post all follow-ups to the newsgroup so
all may benefit.
> That did it Suzanne. The trick was to understand that the watermark is in
> the Header/Footer.
[quoted text clipped - 25 lines]
> > > I suppose the question is, how do I make the washedout watermark slightly
> > > more intense?