RE: watchdog - now this may have changed since i used it years ago but be careful using watchdog, this has been my experience with it. (this was years ago)
First it slows down your site dramatically.
Second the way they have their queries written if you have to restore the db for some reason then the process will stall on you because watchdog is a incredibly HUGE table data wise and you will need to cut that whole process up into chunks on a shared server.
I think when i did it i had to cut it up into 3 or 4 sql files and run them individually to get it back imported. If i tried to run it all at once the import would stall because it was just too large and the sql statements encompassed to many inserts per statement.
So if it is the same just be aware...