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I think most of the US based pay per click providers will do well in Canada if the ads are written for a Canadian audience.
There is enough evidence to show that the Canadian AV, MSN etc. deliver enough traffic to make Overture viable, but I guess the best thing is to make sure the ads you write make it clear that it's only Canadians that will benefit from it.
I'm not aware of any "pure" Canadian PPC search engines.