This story is a few days old but I figured I’d get it in there. Watson was beaten one-on-one recently:
Representative Rush Holt (D-NJ) beat Watson $8600 to $6200. Holt is a nuclear physicist and a 5 time Jeopardy champion.
http://www.huffingtonpost.com/2011/03/01/rush-holt-jeopardy-watson-_n_829672.html
(apologies for linking to the Huffington Post *grin*)