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1) Yes you need to have both on your site as per Indizine's response
2) on some searchs Google displays sponsored links on left above natural search results. There is no way of knowing whether you're going to appear in these positions on down right hand side. Generally google's sponsored ranking process is based predominantly on the highest bidder being top although it is also supposed to base positions on relevance of advert and landing page.
3) The main aim of adwords is to take visitors directly to the page that is of interest to them (known as deep linking). You don't want to land visitors on pages where they then have to search around the site to find what they're looking for. Take them straight there. If possible land them on individual product pages. Some people create specific landing pages for adwords traffic - it's a way of tailoring the landing page to match the searched term and advert exactly.
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