The Inside AdWords blog announced that you can now tell them what category of sites you want your ads to be displayed on. For example, if you run a karate site that sells Samurai swords, then you can tell AdWords to display your ads on sites that talk about the sport of karate. Now, I did not look if karate is a category under "sports" but if it is, then you can choose it. More details on how to use this feature at the AdWords support page.
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