Andy body else experience this?
...On words where I have consisently been #1 or #2 I am nowhere to be scene...
This may very well be because your ads are not showing all the time, due to a lower than recommended daily budget. You can check this in the 'Edit Campaign Settings' page of your account.
...bids have not changed and the average bid esitmator still say s I should have an average rank if 1.7.
Once your account is running, I wouldn't work by what you see in the Traffic Estimator. Instead, monitor your actual statistics, per keyword, at the Ad Group level of your account. Note that you can view these stats for any date range the you choose. So for example you can see your actual Average Position for 'Today', or 'Yesterday', etc.
AWA