Looks like this code was written assuming the 'background.gif' file was 
located in the same directory as the web page itself.  When I change the 
script to match my directory structure (and filename) it worked fine.

<script language="JavaScript1.2">

/*
Watermark Backgound Image Script
*/

if (document.all||document.getElementById)
        document.body.style.background="url('images/backgrnd.gif') white 
center no-repeat fixed"

</script>



==========================================
I wont to have a gif file as a back as a water mark and i found this code 
on some ones page. but i didnt work, Why

<script language="JavaScript1.2">

/*
Watermark Backgound Image Script
*/

if (document.all||document.getElementById)
document.body.style.background="url('background.gif') white center no-
repeat fixed"

</script>