AS far as I know it can't be removed but this is what it does in case you didn't know
Dr. Watson for Windows is a program error debugger that gathers information about your computer when an error (or user-mode fault) occurs with a program. Technical support groups can use the information that Dr. Watson obtains and logs to diagnose a program error. When an error is detected, Dr. Watson creates a text file (Drwtsn32.log) that can be delivered to support personnel by the method they prefer. You also have the option of creating a crash dump file, which is a binary file that a programmer can load into a debugger
you can also disable it and prevent it from making a log file
open up Regedit and find the following key:
Set the Auto string to 0.
Then use Windows Explorer and go to Document and Settings\All Users\Shared Documents\DrWatson\. DeleteUser.dmp and DrWatson32.log.