i am new to adwords .. on setting up my keywords , i can see they are inactive for search .. i am not understanding this as for these keywords there is no adword competition Image link ; http://img453.imageshack.us/img453/6247/regioncapture4or.jpg
It doesn't matter whether or not there is competition, Google just demands a minimum cut. Maybe even because there is no competition. Follow the instructions; increase bid or quality.
Increase CTR%: Create Ads with headlines identicals with your keywords is one method - this may need to create more ad Groups but it worths.
Try setting higher bids in the beginning and ramping them down after some clicks. Helps with the CTR.