Am I on the right track?

After reading so much about Google Adwords it’s making my eyes water, I’d like to know if you think I’m on the right track or any advice you may have to offer.
My small business sells engraved glassware in 4 categories.
Wedding, Corporate, Promotional and Birthday.
If I were to set up 1 Campaign with 4 Adgroups with these headings and use Keywords like "Wedding wine glass" for the Wedding Adgroup, "Corporate wine glass" for Corporate Adgroup etc…. then create ads with the Adgroup word in the ad Headline, would that be the most efficient way to start?
I currently have 1 Campaign with about 100 keywords all under the same Adgroup which I set up without really researching.

See original post by MrSandblast