GuitarGas wrote
Is it ok to use different watt rated resistors in the same circuit?
Yes, it's fine. The power rating just tells you the maximum voltage you can put across a given resistor.
Power = Voltage^2/Resistance. So for a 10k resistor (for example), a 1/8th watt resistor can take a maximum voltage of V = sqrt(P*R) = sqrt(0.125*10k) ~= 35V.
Even if you don't know the amount of voltage across a particular resistor, you can use the difference between the positive and negative rail as an absolute maximum. In the above example, if your circuit is powered by 9V with no charge pump, then you know you will never get close enough to 35V to worry about burning out the resistor. In practice, I think you can use 1/8 watt resistors in most pedals with no problems.
I believe 1/4 watt resistors are more popular with hobbyists only because they are (or at least used to be) more widely available. That's becoming less true, these days. 1/8 watt resistors have the added benefit of being smaller and easier to fit into a build without standing them up.