I'm all for having hands-on lessons and everything, but I don't understand how all of this arbitrage business is such a difficult concept:
1. Load up 2nd or 3rd tier ppc search account with money.
2. Find a niche that has a decent pay per click, like 0.50 cents and up.
3. Find as many relevant keywords as you can.
4. Make a 1 to 5 page site with a little content here and there.
5. Place ads in a real easy and obvious position, rectangle ads work best.
6. Don't pay much more than 10 cents for your keywords ( or as Jon said in his blog shoot for no more than 6 cents...)
7. Start your campaign.
8. Watch your stats. Make sure you are making more than you spend.
9. Just use a template over a few times, make a new one occasionally. Use the same generic domain with subdomains or directories.
10. Adjust. Rinse. Repeat. Improve.
If you don't wanna listen to me, than take it from the man himself:
http://www.aojon.com/the-next-big-thing-in-web-20/