Word Trackingconfusion- tracking202?

I have a small site i wanna put up and running, and i'm about to put in all my keywords and ads, but i realized i have no clue about how tracking keywords work

so i followed the suggestion to go to tracking202.com and after like 30 minutes i got totally lost and confused....

plus I'm hearing bits and pieces of info that contradict each other so... I'd like to ask a few clarification questions: (BTW, my merchants are from Click bank, and i want to start PPC with google, and do not intend to direct link)

1. Do i HAVE to use a tracking software of some sort? (like tracking 202?)
How do these tracking systems work, do they contact somehow the merchant site?
Or do they contact click bank?

2. specifically about tracking 202: from what i understand i can use it to write down adds and upload them to AdWords for instance. Does that mean i HAVE to do it threw them? or is it just a "bonus feature" and i can do it manually?

3. Do i have to put some sort of code on the merchant site?

4. Do i have to put each and every keyword in a defferent addgroup, even if they all have the same add, and the same landing page, so that they will have different "id"?

5. which part of the proccess is done by Click bank? Should i ask them to do something to be able to track words?

As you can see i have read a lot about it and the more i read the less things make sence. so... my last (and maybe most important question is...)

6. Would you advise me to first start a campaign, get to know all the entities in the field better, and start tracking only a month from now maybe?

Thanks, Tidhar the frustrated.