Well, Adsense and Adwords are two separate parts of Google's Network of sites. I have used Adwords a few times, and while it did bring more traffic, it didn't do too much for me, due to the fact that I wasn't willing to expend the money for an extended advertising campaign for long term results. The conversion rates were pretty good though, atleast in regards to what I wanted to do.
Never used google for any type of advertising. You'd think it would be pretty pricey? Joshua, are the prices ridiculous or was it with your money and time?
As a Publisher, I can see that it is very pricey but of course you can pay little for the ads but most likely your ad will be blocked. People do this to increase their CPC so if you want some good results, it will cost a lot of money.