Hi all..just registered with lowyat..haha..so slow of me..but anyway, can't seem to find place to 'introduce yourself', so here I am, trying to answer your question. Ahem..

Adwords =ways to promote websites, you pay google money so that they advertise you website in any other websites ( or blogs). For example, if your website is about computers (selling computers maybe) than your ads will likely be advertised on a computer realted blog, it's all depend on the keyword. Adword is a very good way to increased traffic to your website.

And just for your info,

Adsense = a google programme that allows website(or blog) owner to publish ads on their sites, when someone clicks on the ads, the site owner gain some amount of money, this is because they actually helps the advertiser to increase their traffic thus increasing chances for their product to be sold.

And with that, I ends my messy explanation. God my english is suck!