Hi Nitishia - Sometimes I'll have that same issue with Arc giving me the "failed to save raster data set" error. More often than not it's usually something about the name of the raster that Arc doesn't like. I'll end up trying a couple different variations of the name until it takes.
So, based on your attached attribute tables did you mask your data set instead of clipping the data set? If you mask a raster the attribute table does not reflect those changes. Instead, Masking defines all of the pixels outside of your watershed boundary as NoData. The data is actually still there you just don't see it. If in fact you did use the Clip tool under the Raster Toolset in Data Management then you will need to rebuild your attribute table to reflect any changes made to the new clipped raster. Arc will often carry over the original attribute table even though you've clipped the data set. I should have also mentioned that when you create a raster with the Con tool, the tool will actually update all of the values in the new raster's attribute table to reflect only those pixels that were identified as open water in your SQL statement. In the end your 2630 pixel count is correct given that you are only analyzing just a small watershed. The very large pixel count that you see is for the entire state of Ohio.
Let me know if these clears things up for you and whether or not you need any more help!