In Drupal 6, the way watchdog() is used has changed a bit.
It's all defined in the API, of course, but some things could use a little more clarification.
Here's the function definition as a starting point:
http://api.drupal.org/api/function/watchdog/6
<?php
function watchdog($type, $message, $variables = array(), $severity = WATCHDOG_NOTICE, $link = NULL)
?>