Well I ran the diagnostic tool and it said that 1. "Acme" doesn't display because "We're unable to show your ad because your Quality Score and CPC are too low for this keyword auction.", and 2. "blue widgets" doesn't display because (ok, you guessed it) "We're unable to show your ad because your Quality Score and CPC are too low for this keyword auction.", and 3. Nothing! not even a mention of "acme blue widgets". Am I right to assume that since the diagnostic tool listed the other two keywords first that it had chosen them over my "acme blue widgets" kw?
OK, now I understand that there is a thing called quality score, but in this case google is actually passing over a keyword which is an exact match of the user query? In my case, this keyword has been up for a month with 0 impressions - since adwords seems determined to display acme and blue widgets first, this ad will probably never see the light of day and it is the most relavent ad (at least among my 3).
In this case, uncharacteristically, google is doing the user a disservice.