Ideas to make Matlab code for Robust Image Watermarking

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MatLab

I need to make following Project on Image Watermarking using Matlab, need suggestions of maximum people how to start this.
1.) My project shall include a Host file of size(M*M), which will hide a watermark of size(N*N) (may be a grayscale, text or true color image).
2.) Need to encrypt watermark( Suggestions are needed whether use selective encryption, ciphering), where to get maximum help and how to implement this using Matlab.
3.) Which algorithm I should prefer to encrypt watermark and why?????
4.) Ideas to make Key for Encryption.
5.) Idea to embedd the watermark in host image( Either to use DWT,SVD,DCT,Fibonacci Haar Wavelet) and in which band???????????
6.) What will I loose or gain on embedding in lower frequency bands and higher frequency subbands.
7) How I can make watermark Robust to Rotation, Scaling, Croping, Resizing. Ideas to generate such matlab code.
8.) What performance parameters will decide my robustness.
9.) How to Extract watermark and will they be extracted after attacking the watermarked image.
I will be grateful, if you give your valuable suggestions.