For more detailed tips on search engine strategies, I highly recommend Search Engine Watch. It is the best resource on the net for learning about search engines.
One of your fellow users, Stephen Sherman, pointed out an interesting subtlety about keyphrase selection. Let's assume you find a keyphrase that you think people will type in a lot. Try it, and look at the results. If the results seem to be "on topic", then people are likely to drill down several pages to find a listing that is just right for them. This kind of keyphrase is one you want to target, but if you don't get on page one, you'll still get traffic. If, on the other hand, the results are mostly irrelevant (or full of spammed listings), then people will rarely look at page 2, or even more than the first few listings. These keyphrases are thus not as valuable. This doesn't automatically mean you shouldn't try to target it -- none of the criteria are absolutes -- but it does mean that it will be more difficult to get a useful listing with that keyphrase.
Side note: If you've read my Overture page or my page on Search Engine Trends then you know I think pay-per click services like Overture can be worthwhile. The top position on those nice, juicy specific queries on Overture can often be had for 10 cents each. Yeah, you might only get 10 visits a month by sponsoring "wilmington real" but each one would be looking for exactly what you're selling - at a cost of a dime per pre-qualified visitor! Recent changes at Overture have made it a lot less valuable for highly targeted advertisers, however (you used to be able to get those terms for a penny!). Read these other pages for more information.
Disclaimer: WordTracker pays me a commission on any income generated from clickthroughs from SelfPromotion.com, but as usual, I donate all such income to the Salvation Army in order to preserve my editorial independence.