Affiliate links are allowed, however they will only display one ad per landing page, so if another affiliate is already bidding and you don't have a higher quality score (or are willing to pay a lot) then your ad will never get shown. Redirects are not technically allowed, although I have seen some people do redirects by setting them up directly with the domain registrar. Frames are the more typical way to accomplish the same thing.
What do you mean by "display one ad per landing page"? I only have one ad per landing page. or do you mean that exact affiliate's landing page...where G will only display one ad? ...and how do you do that frame thing - is that a relatively simple html code insertion? or more complex? can it be done using Frontpage? thx,
Yes, G will only display one ad per keyword per landing page. You can search Google to find out how to do frames, it is easy, you can do it in front page.
If you are going to market affiliate products via AdWords, you really have to know what you're doing. I'm an AdWords Professional and got badly burnt presuming my knowledge would be enough. It wasn't. Make sure you set your own landing page and send people to that page instead, collecting their email address at the same time would be my advice. This worked much better.