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Will we be seeing Watto in ep.II? I heard he got real old and he couldn't fly, but why would we see him unless Anakins mother was being released?

slow down, you're actually contradicting yourself. I think that it is likely that Ani will go directly to the slaves once Obi-Wan thinks he is ready to, We may very well see Watto, unless he's dead.

Why is he contradicting himself? I think he has a point there.

I think Mercs point was thast if Shmi had been release by Watto then there would be a lesser likelihood of seeing him.

I thought that Anakin went to Watto to find his mother.

He does...and Watto is the one that tells Anakin where she is.

But why would Watto tell him? Would he know that he was talking to his former slave, or would he think of him as another piece of "bantha fodder" walking through Mos Eisley. I guess Anakin would use mind tricks...

Mind tricks doesnt work on toydarians."No they wonta."

I think an adult Anakin will be very intimidating to Watto, especially in his downtrodden state we are expecting to see.

Who knows...with Anakin being so strong in the force, his mind tricks may actually work on Watto, unlike Qui-Gon of course.

I doubt it. I think "Force blindness/Force invulnerabilty" is something thatr is very black or white. You either have it or you don't. Hutts and Toydarians clearly have it.

Well the fact that Anakin is a Jedi and Watto is some poor bum on the streets will probably play and affect. Watto doesn't want to mess with him, so why be a pain and not tell where Shmi is?

I agree, he's still got a Lightsabre (we assume) and that migt worry Watto.
I doubt Anakin will conceal his weapon like QGJ did.