A bitterly-contested penalty by Tommy Smith saw Watford scramble into the quarter-finals of the FA Cup and pile on the agony for the Premiership's bottom side.

Howard Wilkinson's Sunderland paid the price for missed chances with Kevin Phillips shouldering much of the blame for wasting several opportunities against the club where he started his league career.

His old friend Smith took the personal honours, capitalising on an unfortunate return for Jason McAteer.

The Republic of Ireland international, making his first appearance for Sunderland since September after two hernia operations, conceded the penalty that led to Smith scoring the only goal.

The penalty was hotly-disputed by Sunderland and their feelings towards referee Mike Dean were not improved when, after Thomas Sorensen had saved the first spot-kick, he ordered it to be retaken - Smith finding the back of the net this time.

Wilkinson had made five changes to the team which lost 4-1 at Tottenham and, with Watford losing Arsenal loan star Jermaine Pennant due to injury, should have been looking forward to forgetting their Premiership woes for 90 minutes.

But from the moment early on in the game when Phillips missed a glorious chance after being put through by Tore Andre Flo, it did not look like Sunderland's day.

One-on-one with goalkeeper Alec Chamberlain, the striker placed his shot wide.

Micah Hyde struck tamely into Sorensen's arms from 20 yards as Watford mounted a rare first-half attack before Phillips once again came close for Sunderland.

Julio Arca fed the striker and he sprinted forward before driving low - and a couple of feet wide - from 25 yards out.

Arca, given a second chance after a poor free-kick, neatly nutmegged Hyde and then cut the ball back to a group of waiting Sunderland players.

Wilkinson must have been cursing when it dropped to Jody Craddock instead one of the strikers and though the centre-half tired his best his shot was scuffed and bundled away by centre-half Marcus Gayle.

Phillips must have been regretting his earlier miss and he tried to make amends when Gray's cross picked him out but his firm header was straight at Chamberlain, himself a former Sunderland player.

Hyde skied a shot from the edge of the box, Flo tried to turn and shoot and then Smith had a shot deflected for a corner in brief flurries of activity as the half drew to a close.

If the game had been poor as a spectacle in the first half it did not get much better in the second.

When Arca did try to up the tempo with a low drive from 25 yards it struck Phillips' back and then Phillips himself found Flo in his way when he tried to line up a shot.

Phil Babb came to the rescue to block out Hyde after Watford finally put together a decent move, with Smith and Heidar Helguson both involved in the build-up.

With slightly more than half-an-hour remaining Wilkinson threw on French striker David Bellion and Talal El Karkouri for Flo and Arca.

The substitutions failed to stem a period of Watford pressure. Hyde swiped at a shot from the edge of the box and Gavin Mahon was unable to divert it on target.

The match burst into life in the 65th minute when McAteer was penalised for fouling Helguson in the box and referee Dean awarded a spot-kick.

Smith took it, Sorensen dived low to his right to save but Sunderland's delight was short-lived as Dean ordered a re-take for the Dane being two yards off his line.

This time Smith scored but Sorensen was hugely unlucky not to save again after getting his left hand to the ball.

Allan Nielsen sliced high and wide after neat play by Smith then at the other end Craddock saw his header cleared off the line by Hyde.

With 13 minutes left Bellion's dinked pass found Phillips, who ran at the Watford defenders until, from just inside the box, he tried to slide the ball into the far corner and was unlucky to see it bounce just the wrong side of the post.

Sunderland tried everything without reward as the match ebbed towards the end.

Chamberlain tipped over Michael Proctor's header, Phillips sent a header of his own too high, then Proctor somehow flicked a header over from Phillips' free-kick in the dying seconds but it was to be Watford's day.

Teams

Sunderland Sorensen, Gray, Babb (Proctor 72), Craddock, Wright, Arca (Talal El Karkouri 59), McAteer, Thornton, Kilbane, Phillips, Flo (Bellion 59).

Subs Not Used: Macho, Thirlwell.

Booked: Gray, Craddock.

Watford Chamberlain, Ardley, Cox, Gayle, Robinson, Nielsen, Vernazza, Hyde, Mahon, Helguson, Tommy Smith (Doyley 86).

Subs Not Used: Brown, Noel-Williams, McNamee, Lee.

Booked: Robinson, Hyde.

Goals: Tommy Smith 65 pen.

Att: 26,916

Ref: M Dean (Wirral).