If you have documents that you want to mark as DRAFT or CONFIDENTIAL before printing, you can quickly add a watermark in Word 2007 or Word 2010. Just go to the Page Layout tab and click the Watermark button:
This offers an array of default choices such as DO NOT COPY and, if you scroll down, you'll find DRAFT, SAMPLE, and URGENT. If you don't find what you need, you can insert your own by selecting Custom Watermark and either picking an image or typing the text you want:
Enter and configure your selection and click Apply.
If you ever want to remove your watermark, just return to the Watermark button and select Remove Watermark, or use the Document Inspector to remove all headers, footers, and watermarks all at once.