What does Watched mean?
It means that OE will take special actions on any replies to the Watched message. Any reply to a Watched message will be marked as Watched automatically. If a news account is configured to be included when OE checks for new messages, any new Watched messages will be automatically downloaded on each new message check. A Watched message will appear red, rather than the default color. Any mail or news folder with an unread Watched message will also appear red. You can change this color under Tools| Options| Read.