I'm trying to set up Google AdWords for my Dad's site. Since he is a small business working in construction he only wants his ads to display in Scotland.
So I am wondering how well the geographical restrictions work in Adwords?
I have a suspicion that Google thinks everyone in the UK is in London.
Try doing Location Targeting instead of Global or Nationwide in your campagin settings.
Otherwise you can always put the word Scotland in your ad copy (creative) and that should limit the 'London' clicks.
Good luck!