So, I went there, and there were three keys. I removed them all.
I restarted MC, reset all the watch folders on the default library, took the tick out of 'enable watch folders' and closed MC.
The new key under library specific was created, with WATCH 1, WATCH 2, etc. etc. values.
I load up a test library, check the watch folder settings and find that they're mirrored from the default library.
I remove all the watched folders.
I close MC.
There is still only only one entry under 'library specific', and all the WATCH values have been removed, leaving just the task settings.
Upon reloading the default library, there is still only one entry under library specific, and there are no folders in the watched folders list.
If I tick the 'enable watched folders' option, all of the above stays the same, except that a whole load of files I don't want get auto-imported into the test library. The test library in question is a clone of the default library, if that's any help.
It's about the same time as messing around with these two libraries that I found the persistant "Start" entry in the tree, and while there, I noted that the "Features" registry key has a "Start" DWORD listed with a value of zero, but it still shows up in the tree.
The above tests were made using build .74
-marko.