Anand - I noticed something quirky in Word 2007.
I have a document with a fair number of tables. I applied a watermark. I observed that in most of the tables in the document, the table overlaps the watermark but in some cases the table is transparent and the watermark passes over the table. This gives an odd look to the document. I checked the Table Properties and found nothing to fix the problem.
Is there a way to solve this issue?