Tracking your converting keywords is ESSENTIAL in any PPC campaign! If you do not track, you do not know what's working, and what is not. Plus the fact that your are also spending money where it need not be spent, as well as not spending money where it should be.
There are ton's of tracking applications for PPC (I have the majority of them), but there is one that stands out among most. And guess what? Its FREE!!
Go checkout Tracking202.c0m and download there free application. Its does some really neat things that most paid applications don't even have.
Next, your gonna need some training with Adwords. I learned it originally from trial and error, but I got a good solid start from Both John Reese's Traffic Secrets course, and Perry Marshall.
I don't know if anyone here has a copy of Traffic Secrets to lend you, but you can pickup Perry's book on Adword's for like $12 now over at Amazon. Great stuff.
Oh, and Adwords just got updated, so some of the stuff he will talk about is outdated, but it will still give you a good primer.
Got more questions? PM me. Hope this helps.