When you experienced application errors, Dr. Watson would generate a crash dump file (optional) and record the event in the Application event log. You are still experiencing the same errors and Dr. Watson generates the crash dump, but it no longer records the event in the Application event log?
Dr. Watson keeps track of the number of crashes in the registry, by incrementing the NumberOfCrashes value name, a REG_DWORD data type, at HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\DrWatson. When the number of crashes exceeds the value in MaximumCrashes, at the same key, Dr. Watson adds the new error to its' log and generates crash dumps, but it does NOT add any new errors to its' application log or to the Application event log.
If you Start / Run / Drwtsn32.exe / OK, you can manage the MaximumCrashes value. You can also reset the NumberOfCrashes by pressing Clear, but this will delete all the errors from the Application Errors and it will delete all entries in the Application event log, even those that were NOT created by Dr. Watson. These errors will remain in the Drwtsn32.log.
NOTE: See tip 0241 » Is the Doctor in?