I was wondering if it's a good tactic to 'buy' traffic through Adwords and then earn money from them through CPAlead. I've heard more people talk about it. Please share your opinion.
in theory yes - as long as your ppc with adwords is lower than your cpalead earnings then you are in profit ;-)
Yes, you can do it. Just keep your spending on AdWords lower the n your profit from CPA offers. You can use direct linking method (yes, it is against Google Adwords display URL policy). But it is still working. What you need to do is re-direct and mask the link. Your display URL and destination URL on AdWords are the same, but the URL is being re-directed and masked by your hosting (such as GoDaddy) and goes to your CPA offer. Probably GoDaddy is the only hosting company who do both - re-direct and URL masking. But you have to take your own risk to be spotted by Google. There is a very good solution to outfox Google using Affiliate Prophet software.
Here's a link for all of you affiliate marketers wishing to use Adwords: http://adwords.google.com/support/bin/answer.py?hl=en&answer=45068