Re: Guidance needed from the experts
You don't mention what your keyword is or how much traffic you're supposed to be getting (eg. with reference to the Adwords keyword tool). It sounds like you're ranking for a keyword that doesn't get any traffic.
Clicks on ads is a different story - your ads actually have to be decent and relevant for people to click on them. Average CTR for Adsense is maybe 1-5% so you need to get a few hundred hits at least to start seeing your CTR.
You might also just be ranking on local or personalized search - make sure you're logged out of your Google account (including clearing flash cookies) and try a few different versions of Google (using proxies) to make sure you're ranking across the board.
"An ounce of action is worth a ton of theory." - Ralph Waldo Emerson
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