You've got the layer thumbnail selected, rather than the mask thumbnail. Click on the mask thumbnail in the Layers Panel, so that it has the little border around it.
First, a Levels layer and move the black slider on the Red channel to 20, and the black slider on the Green channel to 5. Mask it to the circle.
Then this to tidy it up.
When you crop, do you see the photo changing size on screen? It should remain exactly the same size (apart from the removal of the cropped edges, of course).
Just to check, have you opened a file that is a bit older (from a time when you know that everything was running smoothly) and see if the same problems are happening with that file now?
I painted on the D&B layer with a 3% opacity brush. Anything higher than that will be too brutal, I think.
I used a 10% brush for the colour fix layer.
Sorry, I understand now.
Presently the action is set up to place the watermark 10 pixels in from each edge. You can modify that easily by re-recording the "Canvas Size" step in this part: http://www.damiensymonds.net/images/actions/wmact24.gif