HOW DID fresh YORK CITY become the mecca of jazz? It must have something to do with the city's chaos, clash, deficit and collage of cultures that musicians have extracted and infused into their confess voices. Watch Out, the Misako Kano Quartet's first release opposite to of the Knitting Factory Records, is a strange York City album. Featuring the late Thomas Chapin on alto sax and flute Kiyoto Fujiwara upon bass, Matt Wilson on tympanums and Misako Kano forward piano, this album was complet shortly before Chapin's death in February, 1998