hey if i am an affiliate of a site and use adwords to advertise my referall number, that complies with the TOS of adwords correct?
correct! the displaying url in the ad should not contain your referral id, only your destination url can be your affiliate id.
Use without any problem, just luck for what are you spending your money. i mean write good ads and choose the right keywords. Good luck!
after adwords has changed in 08/2006 , you can use adword to promote online products if the merchant or other affiliate didn't use the URL of the landing page of the product you promote before you.