Of course there is no reason why you cannot have a successful campaign based on 10 cents a click, dependant upon your keywords, and the effectiveness of your ad copy.
Just as a starting point; perhaps you've checked these out already, but a good place to find useful information is in the Adwords Forum Library [webmasterworld.com].
In addition, the site search at the bottom of the page (I'm presuming everyone sees it at the bottom of the page) will help you find more specific information and answers to your questions. There are 1,000's of threads for you to pan through in search of nuggets...
Syzygy
Searchable AdWords FAQ:
[adwords.google.com...]
AdWords Learning Center:
[google.com...]
AWA