Is there a way to apply watermarks to Individual Images within an album, using a radio button or something like it?? As opposed to applying the watermark to Every image within the album??

I don't recall if it was introduced for 1.2.9 or only in the nightly, but yes, it is possible to specify per-image watermarks.

Well, that is a 1.3 feature, so you will need to use the nightly build or wait for the 1.3 release.