"LuckyStrike"
[snip]
So, my questions, after having written this mini-novel are.... What
do you
think may have happened? Aside from the course of action I had
pursued, was
there any other solution to fix this? Should I ever attempt to use
AdWatch
again??? G ??

Thanks,
--

LuckyStrike

First, backup your Registry. (I always go to pure DOS when I use
scanreg /restore )
Second, get your computer running the way you want it to (without
AdAware or AdWatch) and then backup your Registry again.
Then, after a reboot and cleaning out your temp files etc, try
AdAwatch again.
This time , permit the reg key to be put in the Registry (copy the key
down if you like) and run AdWatch.
I wouldn't shut the program through ctrl-alt-del but through the
progam itself (may require a reboot to do this to keep it from
startup).
Send a letter to LavaSoft and/or go through their Q&A or forum.
I used to use AdAware Pro and the AdWatch feature without any major
problems.
Perhaps it was the refusal to allow the Registry key change that
snowballed everything into the problem you had.
One program interfering with another.