Also, suppose you bid up only one word in your campaign above the default bid. Does that affect the content as well as the search?
I seem to remember that I got content clicks in the past above the default bid for the group when I bid up certain words.
Therefore if thats the keyword being pulled, it will show up on content (which is why the keyword status says 'inactive for search').
And if you have a keyword level url on that keyword, google will consider this as your max bid (if you have only a keyword level bid and default bid. If you have a content level bid, that gets the first consideration, followed by keyword level bid, and finally default).