In the content targed faq it says the following,
"If you are a web publisher that sells advertising inventory, and your site gets more than 20 million page views a month — talk to Google about having our Content-Targeted Ads show up on your site."
But no website accepted into Adsense needs 20 million page views per month... is the content targed ads something else?
If so... then where does the Adsense traffic from regular websites show up in Adwords stats?
As you can see i am very confused on this issue, any help appreciated.
You are correct. The 20 Million Page Views is referring to Premium Adsense for large publishers. With this amount publishers get more assistance or have more flexibility in what and how ads can be displayed. Either way Premium or otherwise all adwords ads are content targeted.