David Duval manhandled a struggling Angel Cabrera, 4 and 3.
Jim Furyk and Angel Cabrera were two shots behind Woods after shooting 66.
Angel Cabrera of Argentina was four under par through 12 holes.
Ernie Els (67) and Angel Cabrera (70) were tied for third, five strokes back.
But sobbing relatives identified the dead man as Angel Cabrera, 54, who had worked at the grocery for seven years.
Three other players were tied at nine under - Angel Cabrera, David Duval and Ernie Els.
Sergio García and Angel Cabrera, who were tied for second place in the Masters with opening-round 68's, each had legitimate reasons to feel good about his chances.
The team of Michael Campbell and Angel Cabrera was soon defeated, 5 and 3.
With long drives and a silky short game, Watson had a second-round 71, which left him one shot behind Angel Cabrera going into Saturday's third round.