I had one of those watches made at MGM, and I treasure it.
They had a book from which I selected my artwork. I chose Mickey and Donald, but they had a zillion designs from which to pick. Then, you choose whether you want the look of a sketch or a full-color piece of art. I went for the sketch in black and blue; I just prefer that look.
After that, you select the band and the bezel. I chose a brown alligator-look band with a gold, Roman bezel. And, since, this was a big family trip, I asked the artist (Jim) to also inscribe "Walt Disney World" and the date along the bottom.
It takes a minimum of four hours to complete the watch, but when it's finished you receive not only the watch but also the sketch or the full-color drawing, signed by the artist.
My watch with the sketch was $200 (plus $12 tax). The watch with full-color art is $350. You can also have the watch and drawing framed and double-matted for an additional cost of $108 if you choose. I wear my watches, so I didn't do that.
I had my watch delivered to the resort, and I was amazed with the quality of the workmanship and the presentation. The sketch and the watch came enclosed in a rigid, black leather tube that snaps closed and is embossed on the outside with a gold Disney signature. Then, the whole thing was placed inside a long white box. Absolutely beautiful!
The watches are also available at Uptown Jewelers in the Magic Kingdom, and from what I understand, the artists will work with you via fax or e-mail if you can't wait till you get to WDW to place your order or just want to buy one as a gift.
Here's the contact information. The info from my receipt is listed first, followed by the info for Uptown Jewelers.
Sunset Club Couture
"One of a Time . . . Timepieces"
Disney-MGM Studios
P.O. Box 10200
Lake Buena Vista, FL 32830-0200
phone (407) 560-1777
Uptown Jewelers
PO Box 10000
Lake Buena Vista, FL 32390-1000
(407) 824-6500
Good luck! I intend to get another watch this December, and I hope you can, too. They're gorgeous! (I'll have to check out the World of Disney for the discount this time.

I didn't know they do the watches there. Thanks, DiznEeyore!)
Pat
123 days and counting . . . again