Does RapidLot apply overlays to Super-Sized images?

RapidLot requires overlays to be sized 1024 x 768. This is to make sure we do not lose quality when we convert them to standard size etc. The overlays are never applied to supersize images. The drop down in the upper right of the screen that shows thumbnails is just to show the images when there are multiple images uploaded and has no bearing on the overlay functionality.