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Which way would you turn these? Can put an OK next to the one that are fine.

1 I was watching while you were playing.
I watched while you were playing
I was watching while you played THIS ONE SEEMS OFF TO ME
I watched while you played.
2 I'm going to eat while I am waiting
while I wait
3 I was eating while was waiting.
while I waited THIS SEEMS OFF TO ME
4 I ate while I was waiting
while I waited.

How come the one's in bold seem off to me.

I've been told that even if the continuous isn't used after WHILE that it's implied.
as in "I was living with her while I looked for a place of my own." is that OK?

and I've read that the clause after while is the one that takes longest so it has to be in the continous form?

Thank you
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All your sentences are possible (if we overlook the typo in #3).
alc24
I've been told that even if the continuous isn't used after WHILE that it's implied.

as in "I was living with her while I looked for a place of my own." is that OK?

Yes.
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Don't you find it a little more awkward to use the continuous in the first clause and the simple tense after the while.
since the clause after the while is the longer action and it's usually in the continuous form.
Are there sentence that you wouldn't say, like the ones I have in bold?

Thank you
alc24Don't you find it a little more awkward to use the continuous in the first clause and the simple tense after the while.

Not in your examples. It does have a slightly different "feel" to it though (as, indeed, do all of the different combinations of tenses).
alc24Are there sentence that you wouldn't say, like the ones I have in bold?
I can imagine using all of them if the appropriate situation arose.