Draft watermark not working. No specific customization.

Hi,

I have a very basic customization - only to set the draft.mode to "yes"  (see attached).

Still I don't get watermark. I did see problems reported earlier on the subject, but most related to accessing the image. I don;t see any such error while creating PDF/ bare-FO output.

Here is output from my command-line:
  ::
  :: DBG ::: .\fop-0.94\fop -d -c .\custom\fonts\font-spec.xml -xml .\projects\test\input\index.xml -xsl .\custom\tst-pd
f.xsl -pdf .\projects\test\output\test.pdf
  ::
SystemId Unknown; Line #18; Column #75; Prefix must resolve to a namespace: http
Mar 8, 2008 5:48:02 PM org.apache.fop.cli.InputHandler warning
WARNING: javax.xml.transform.TransformerException: Making portrait pages on USletter paper (8.5inx11in)
Mar 8, 2008 5:48:03 PM org.apache.fop.hyphenation.Hyphenator getHyphenationTree
SEVERE: Couldn't find hyphenation pattern en
  ::
  :: DBG ::: .\fop-0.94\fop -xml .\projects\test\input\index.xml -xsl .\custom\custom-fo.xsl -foout .\projects\test\outp
ut\test.fo
  ::
Mar 8, 2008 5:48:06 PM org.apache.fop.cli.InputHandler warning
WARNING: javax.xml.transform.TransformerException: Making portrait pages on A4 paper (210mmx297mm)
  ::
  :: Done!
  ::

I am using docbook-xsl 1.73.2

tst-pdf.xsl
test.pdf
index.xml