Crackah - I feel your pain. I used AdWords and Yahoo Search Marketing for my BuyXenon business, and it worked GREAT. Getting into it at first is difficult because you won't know what words, phrases, etc to use.. but here are some tips:
1) Use google's keyword generator
2) you'll want to try some search engine competitor analysis tool, like wordtracker (
Keyword services for professional search engine optimization,
Compete Search Analytics) etc... Look around and you'll find the free ones eventually. Hell, use the free trials over and over.
3) Go onto YouTube and search for Google Adwords tips. You'd be surprised how much help these stupid vids can be, haha.
4) For pricing... what worked best for me, was starting with 300+ keywords, then I gradually narrowed the keywords down to those top-performers... I ended up with about 20-30 keywords that REALLY made it worthwhile to concentrate on. Instead of spilling out my money to 300+ words that would not always convert, I narrowed down to 20-30 that almost ALWAYS were targeted to my product.
I also recommend going and setting a manual CPC price on each word. Some people say don't do it - but I did, and it made it so I ranked #1/2 constantly for those words.
Like anything else, it'll take time to figure it all out - but once you do, it's golden.