Watford 1, Wanderers 0.

WHEN the dust has settled and everyone has finished slagging off the referee, Wanderers will scratch their heads in disbelief as they look up at Watford riding high at the top of the table, writes BEN Chief Soccer Writer Gordon Sharrock.

Ten points is a formidable gap to make up at this stage of the season. More formidable, in fact, than Watford themselves.

But for a highly debateable penalty - needlessly conceded and harshly awarded - three minutes from time, last night's game at Vicarage Road would have ended in a scoreless draw!

Graham Taylor's Hornets, doubly triumphant after learning that Fulham had lost their unbeaten record to Preston, might be leading the field but they are no wonder team. They showed nothing to suggest they can't be beaten or caught.

And Wanderers showed enough to suggest that they can be one of the teams doing the catching, provided they can get back on track quickly and aren't on the wrong end of too many more controversial refereeing decisons!

For, until Phil Dowd ruled that Anthony Barness had deliberately handled the ball and Tommy Mooney had duly converted the penalty, it was impossible to choose between the two sides.

Wanderers, forced into a rethink after Ian Marshall failed a late fitnss test, had comfortably had the better of the first half, controlling long periods, creating the clearest scoring chances and bringing the best out of Alec Chamberlain - far and away the busier of the two keepers. Then, when Watford raised their game with the introduction of half time substitutes Mooney and Nordin Wooter, they surrendered possession and territory but defended solidly and never looked like conceding a goal.

It's a dangerous game to play - as they discovered at Gillingham where two late goals cost them a couple of points - but they were playing it well with Gudni Bergsson and Mark Fish at the heart of an extremely resolute defensive formation.

Hence the bitter disappointment when the Stoke referee, who had earlier rejected penalty appeals from both sides, pointed to the spot. He'd dismissed Wanderers' first half claims when Ward crudely climbed all over Michael Ricketts and similary waved away Wooter's protests when he went down under Simon Charlton's challenge.

What annoyed Wanderers so much was the fact that two minutes after penalising Barness, Mr Dowd decided Allan Nielsen's handball - blocking Gareth Farrely's goalbound shot - was accidental!

Allardyce accused the referee of being a "homer" and claimed he had not treated Wanderers fairly all night. Bergsson offered a somewhat calmer assessment than his manager.

"At first I thought, because the referee was so close and considering the way 'Barney' reacted, that it was a penalty," he explained, "but by all accounts it was a very, very harsh decision. Then, when Gareth Farrelly had the strike on goal a couple of minutes later and the Watford player was waving his hands about, I expected him to award us a penalty.

"After one had been given against us, we felt the referee should have given the one against them but, unfortunately, he didn't."

Taylor, who suffered humiliation by a thousand cuts during his days in charge of England, has emerged to re-establish himself as one of the game's most respected club managers. But experience has taught him to be cautious.

"It's good to be top of the table," he acknowledged, "but fotball's a game that I do not trust."

Allardyce must be thinking along the same lines himself - and with good reason.

A few short weeks ago Wanderers were sitting pretty themselves, tucked in comfortably behind Fulham and Watford and, although they had exceeded even his pre-season expectations, every win made the manager more confident that they could sustain a promotion challenge. Now, having taken just six points from a possible 21, they have dropped off the pace, slipped well behind his two-points-per-game schedule and have suffered some cruel blows to their confidence with late goals costing them dear.

"It's just not been going for us," he considered. "We haven't been getting the results we've deserved, whether it's been down to bad refereeing, poor finishing, bad defending or bad luck - because we've conceded quite a few deflected goals.

"Our performances deserve better but we just have to take it on the chin and bounce back."

With Ricardo Gardner back in harness - coming through his first 90 minutes of first team action looking none the worse for his eight-month absence - and Kevin Nolan showing a talent and a maturity way beyond his 18 years, Wanderers have emerged from a disappointing run of results with two highly-promising additions to their squad.

Had Ricketts, Per Frandsen or young Nolan been luckier or more accurate in front of goal in the first half, they might also have a noteable scalp to their name.

And Watford might not be top of the league.