I've also been asked about the ballasting on Waton. I'm using the technique documented by Gordon S in his Eastwood Town thread on RMWeb. I don't mask the edges and a lot of my track has card strips along the adge to represent concrete cable ducts which makes life easier.
The ballast is Woodland scenics fine grey stuck down with PVA applied neat with a brush. I do about a foot per session. Any more and my brain fries!

Some more detail and piccies to show what it looks like. Here's a shot of a bit of track in the raw (almost). The track has been given a squirt of Halfords grey primer and, because this section is meant to represent concrete sleepers, a squirt of Plasticote Suede effect.

I apply the PVA (cheapo stuff in a big bottle from somewhere) with a number 1 paintbrush. I'm not too careful about it but basically slap it on in the big areas then add blobs of glue between sleepers. The PVA will tend to settle into the corners on its own. Any bits of glue in the wrong place are wiped off with the finger.

This section is about 3 inches which is not too long so the PVA dries too much and also not too long so my brain, eyes and paintbrush fingers start losing it.
I then sprinkle the ballast by pinching a bit between thumb and forefinger. I have done it by sprinkling from a small bottle but I find I have better control using my fingers. I'm basically a fairly messy modeller so I tend to use my fingers for most things!

Then I knock any excess off the ends of the sleepers with my finger and tamp it down into the glue. Worth also running your fingernail along the insides of the rails to dislodge any stray ballast and glue otherwise the ride is a bit rough in N gauge!

Pretty much done though it doesn't look that clever (yet).

I leave it for 24 hours or so to let the PVA do its stuff then brush off any excess, not usually very much, with a bigger paintbrush.
This sounds like a really fiddly and time consuming way of doing things but surprisingly if you analyse it it's quite time efficient. In the traditional technique you:
1) Sprinkle the ballast dry onto the track
2) Push, prod, poke and flick the stuff around until it's where it should be and not all over the sleepers, in the check rails gaps etc. etc.
3) Spray it all with a wetting agent
4) Gently feed dilute PVA to the ballast
5) Readjust any ballast that has escaped/moved
6) Wait 24 hours for the glue to dry
7) Clean up and remove excess.
This works but there are a number of disadvantages:
1) Getting the stuff where you want it is a real pain and very time consuming especially in N gauge.
2) You need to wet everything otherwise it all goes to ... when you add the PVA (usually)
3) It's very easy to gum up pointwork due to the amout of dilute glue floating about.
4) Drying out and hardening can take 24 to 48 hours depending on the weather.
So with the technique I am using the only tedious bit is painting the glue between the sleepers. No getting round it it is a bit of a pig to do but it is no worse than trying to get the dry ballast in the right place and not in the wrong place. Actually adding the ballast is easy, just sprinkle it onto the wet PVA and tamp it down. It only sticks where you want it and the rest is just brushed/vacuumed off when the glue is dry. Overall it's probably quicker.
Another plus factor I have found in N gauge is that the result looks flatter/smoother. With the traditional technique the ballast looks rougher an this is more apparent in N gauge. This is either because the ballast lifts a bit when soaked with glue or the PVA acts as a bit of a varnish and causes it to look rougher. Either way I am much happier with the smoother look of the ballast tamped into the neat PVA.
Cheers
Dave