Here is a link to Google’s beginners guide to help you begin your flight:
http://static.googleusercontent.com/...rter-guide.pdf
This will help you get the bare bones of SEO right. With Google Adword suggestions, Google is trying to help you understand the importance of right keywords. Your website/ blog should ideally contain a good mix of keywords that are competitive, popular and highly profitable.
When I am optimizing for my website, I always make sure that I have “Keyword Country” with me. KC not just helps me to research geographically active keywords but also lets me to reverse engineer 96% of competitor keywords. Based on the “keyword groups” that it generates for me, I can easily create website sections and ad campaigns for promotion.