1. The article [Q308538] describes Dr. Watson for the Windows program error debugger tool which is a program error debugger that gathers information about your computer when an error (or user-mode fault) occurs with a program. When an error is detected, by default Dr. Watson creates a text file Drwrsn32.log that is saved in the following location:

drive:\Documents and Settings\All Users.WINNT\Application Data\Microsoft\Dr Watson

Note: The error reporting client for the operating system (DWWIN.exe (Dr. Watson)) can report errors in user mode, kernel mode, and unplanned shutdown events. In the event of a crash or assertion within an error reporting aware application, the application involved in the crash will call out the error reporting executable in a Just-in-Time fashion before the application closes down and then saves information such as the application name, application version, and a mini dump of the crash in a local log (such as MSInfo.log) which may be used for identifying the cause of the crash.

2. The article [Q188296] explains that you can edit the Registry to disable the Dr. Watson from running by default.