Jem001,
You may have trouble finding words that are priced that low. Even words that no one is using in search advertising right now have a higher CPC than a penny. The cost (while influenced by demand) is also affected by how well Google can convert for you based on the volume they can bring to the table.
When constructing your Adwords campaigns, adgroups and keyword lists; be sure to make them highly targeted. Very tight set of keywords/keyword phrases, same keywords included in ad copy and don't forget to optimize your landing pages to help complete the conversion funnel. If you have been doing SEO for a while, it should be pretty straight forward, you are just paying for traffic now instead of driving it by design.
Landing page optimization is one of the most important factors in having success with any type of PPC advertising. Be sure to include keywords that you used in your ads in a prominent place on the landing page. Users need to know they landed in the right place after they have clicked on your ad. You also need to deliver what it was that the ad promised them. For instance if your ad text says "Buy product only 9.99", this text should also be on the landing page.
Next make it easy and obvious for them to complete the action you want them to complete. This could happen in a variety of ways but just remember to make it simple and do it in as few steps as possible. The idea is that a user is following a path from when they entered a search query, saw your ad, clicked it, came to the page, and completed the action. Any confusion or ambiguity in this "funnel" and they will leave and start over somewhere else.
I highly recommend this book (you can get it in eBook form) for conversion optimization,
http://www.amazon.com/Conversion-Optimization-Converting-Prospects-Customers/dp/1449377564
Here is another good resource,
http://www.wdfm.com/marketing-tips/landing-pages.php
Some good resources covering Adwords are by Perry Marshall The Definitive Guide to Google AdWords and the Google resource center where they have video tutorials covering best practices.
You can find more book titles here,
http://www.squidoo.com/best-adwords-books
Here is a link to the learning center,
http://support.google.com/adwords/?hl=en
I hope these resources help and good luck!
Shawn