Since, I've read this thread, I've done a whole heap of reading up on this. I've seen a few examples, and I can definitely see how, with a lot of tweaking, it can work. Good luck, and thanks for sharing your stats!
If you just started and you were close to breaking even right away you are doing fantastic. With some small adjustments you should be able to reach positive ROI. If you want some feedback or help on your campaign just PM me. (I manage PPC campaigns for a living...)