I have recently subscribed to an account with Wordtracker but I am a little confused at the results.

I have basically figured out 17 keyword phrases using Wordtracker, which seems pretty good considering I only had about 3 before.

BUT, a couple of questions.

Only 1 phrase that gets a KEI score above 10 (which is where Wordtracker says you want to start focusing on). What does this mean? These are targeted phrases. All the other KEI scores are less than 1. But the competition on a lot of the pages is less than 1000. Would it still be worth optimizing for those pages... If not, I'm out of luck.

Secondly, I have heard people say that it doesn't matter if these phrases are in the META tags or not, but how can I optimize for certain phrases because some of the recomended phrases are actually mispelled search terms. I don't want my pages to have spelling errors as this looks really bad.

Any help is appreciated.

Don't bother optimizing for misspelled terms. Any technique that shortcuts the user experience is a bad idea.

I find the phrase usually matters slightly if it's in the description tag, but not so much the keywords tag since it's pretty well ignored these days anyway.

If the keyword/phrase doesn't have a high KEI in Wordtracker, that doesn't mean you shouldn't go for it. Wordtracker's data is based off a fairly small percentage of searches and is subject to error. Go for them, see what happens, and if they don't work, go for something else.

Okay, I don't think I have ever been so confused. It seems like everywhere you go there is someone contradicting SEO techniques (not referring to your comments here just in general).

Okay let's see if I have this right:

1)Optimize for keywords but ultimately keep user experience in mind.
2)Put the info in the META tags but don't spend much time on them, they are basically just to get a little bit of traffic from the search engines that still use them but most don't.
3)Linking is good, but not reciprocal linking as I could be construed as a link farm.
4)Writing articles is the best way to build back links.
5)no more than 2 or 3 phrases/keywords in the title tag
6)PR doesn't mean anything and don't even bother looking at it. Just telling me that I am indexed.
7)Submitting to directories is still good? A little confused on this one... Are directories considered link farms?
8)Have a well structured page in that there is lots of content with good anchor text.

Is there anyothers that I have missed?

As far as keywords... If I don't need to focus on them in the META tags, and I just need to sprinkle them in the content. But, how many times should I repeat those phrases? Also, do the phrases need to be in the same sentence.

For example, one phrase that Word Tracker is suggesting for one of my pages is:

no money down with $1000 cash back at closing

Do I have to have that EXACT phrase in my content or would the following text trigger it:

Today I am going to teach you how to buy a home.  
No matter who you are or where you live this article will 
get down to the basics for you.  The biggest problem most 
people have with owning their own home is saving the
 money for the deposit.  With the simple steps I show 
you hear you can have your very own home.  Closing a
 property transaction will usually take place at a lawyers 
office and they can charge up to $1000 for their services.
Just because the lawyer is charging a lot of money doesn't
mean that he/she will get back to you fast when you call them.