There is plenty of parking in the town centre multistories As long as you get there early enough should be fine - about 10 mins walk to the ground then its what I did last year and it worked OK Some info on here http://www.footballgroundguide.com/watford/#How To Get There By Car & Where To Park
I'm thinking about it too aparently theres loads around who do parking cheaper than the club, which is £5 as i understand. Why do clubs charge loads? Coventry's is £12, which is scandellous to say you'll only be there for 2 hours maximum.