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Does # of KW in adgroup efffect CPC?

I was told today by MSN rep it does?

3:16 am on Sep 9, 2007 (gmt 0)

Junior Member from CA 

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joined:May 24, 2006
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Could it be true that a high (750) number of keywords in an MSN adgroup might lower some kind of Quality Score and/or raise CPC if many of the KW are not showing a high CTR? I have a lot of mispelled keywords and so on - should I be removing them? I got the impression from a rep today that too many non-performing KW was a bad thing and would cause a problem.

thanks :-)