Action Packed Response! Greetings Jim,
Try using Save for Web... instead of Save As... in your Action Script. It works without a 'pixel resolution' dialog box.
Essentially it's exporting instead of saving but it produces the same results.
Just remember that if you're saving over the same image with the same name, it will ask you if you want to replace the old file with the new one (the Action Script won't respond to this for you). The best way around this is to use a separate target folder (for example, one named, "Watermarked") rather than the original folder. Then if you want to replace the old images with the new ones, you can drag n' drop them from the new folder to the old folder after you've watermarked them.
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