When you include your keywords in the ad they put them in bold ,so as to accent them which is going to bring more eyeballs to the ad
I think you're doing ok Wait until you get enough data before you decide to do anything. Like Kate said, it take time to get conversion/sale. Be patient. But, you won't wait untill you losing a lot of money right? My advice, if yur ads end at position 1,2 or 3 lower your bid to 20%...so your ads will end in position 6 (but still in the front page). Push as many as keywords to position 6.Try to use adwords editor. Wait until you get enough data before you decide to do anything (normally i'll wait until 300 clicks before i decide whether to move on or to stop and test another niche). From there (after 300 clicks)you can see which keyword convert and which one is not converting. Then, you may go deep for keywords that convert well and higher your bid. Just my opinion. All the best.
When creating an ad you should follow the format below. Title: Should be the keyword First Line: Benefit of your product or service Second Line: Features that provide that benefit