trying to add watermark with batch queue manager

[Hal]

I'm getting nowhere trying to do this.  I added the watermark tool to 
the assigned tools, put the .png file (have tried the .cr3 as well), 
created a watermark.png file, and populated the tool settings.  When I 
Run, this is what I get:

16:06:38 :: Item "_99A6656-CR3_DxO_HQ_v1.png" from queue "#1": Processing...
16:06:39 :: Item "_99A6656-CR3_DxO_HQ_v1.png" from queue "#1": Failed to 
process item...
16:06:39 :: Item "_99A6656-CR3_DxO_HQ_v1.png" from queue "#1":
16:06:39 :: Item "_99A6656-CR3_DxO_HQ_v1.png" from queue "#1": Failed to 
process item...
16:06:39 :: Item "_99A6656-CR3_DxO_HQ_v1.png" from queue "#1": Failed to 
create file...

I would really like to get this working, but have no idea how to proceed.

Thanks