Thats great. Glad I could help. Here is the workaround if you want to log to a text file while using CGWatcher:
(Hopefully the author of CGWatcher can fix this in a future update)

Create a cgminer.cmd(or name it whatever) file with the following line in it:
cgminer.exe 2>logfile.txt

Then point CGWatcher to the cmd file instead of to the cgminer.exe in the Path box on the Settings tab.

I tested this by using a .conf file with the rest of the settings in it that I had in the cmd line previously - not sure if it will work if you have any arguments in the CGWatcher box, but they may propogate through.

Hope this helps.