I've also wondered about the adwords when applied to domain parking. Sometimes, when you think the chosen keywords would drive quite a bit of traffic, it could be 50% or less traffic.
G's ky tool is horrible, but not many decent alternatives have show up out there. I have been told Market Samurai is a good paid one, but I have no personal experience with that.
A new free ky tool that I just became aware of thanks to BHW can be found here.
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