I know how to block IPs in AdWords.....No but look up block your competition on AdWords on YouTube. One of the carpet cleaning web guys had a video of how to do it, can't remember who it was though. There's a way to block people from seeing your ads after they've clicked once.
How did you fix your ad?Google does a pretty good job monitoring this themselves...
For a test, click on your own ad three or four times. You'll get charged for each, but those clicks/charges will disappear within 20 minutes.
I used to think my competitors sat there and clicked on my ads to derail my business until I realized the reason I was getting lots of clicks and no conversions was because my ad and website sucked balls.