Fister, be careful over there. You have my respect and all of my gratitude and support for what you and the other troops are doing. Take your time on the updates of the photonovel/customs - and most of all take care of yourself and your buddies over there. God Bless.
Anyways, to answer the question about Watto, no he doesn't really appear in SOTE, as his character probably hadn't even been thought up yet by Lucas as SOTE came out in late 1995, and Lucas didn't write SOTE.
Fister added him though to his version of the photonovel, which I think is fine.