Google has confirmed a bug with region targeting in the AdWords advertiser console at WebmasterWorld. The bug appears to be an issue with when you set the regions you want your ads to be targeted towards and when you hit the save button, it shows you an error.
AdSenseAdvisor, an official Google representative, confirmed the issue on October 29th:
Yep, I can confirm that, C7Mike.
Assuming that I am in the office at the time it occurs, I'll post again once I've heard this is resolved.
To set reasonable expectations I typically wait at least four hours after I have heard from engineering that an issue is resolved before I am willing to say it's fixed in front of thousands of folks. ;) So, quite often, someone in this forum will notice that an issue has been resolved before I ever post to say so.
There has been no update from Google since that post and the one who reported the issue said it is half fixed. He explained that the changes seem to go through, but it does popup an error, which makes it confusing. In addition, he is not confident the targeting is correct and is concerned to use the feature:
From what I'm seeing on my end, I believe the issue to be partially corrected. I can define an area to advertise in, but when I save I get the error. I then refresh, like it says for me to do, and then it seems to act like the changes made it through.
Based on the numbers I'm seeing, something is still wrong, even though it shows that we're advertising in the defined area. The numbers act as if the changes to the broadcast area haven't been enacted even though the account shows the broadcast area as being enabled.
Forum discussion at WebmasterWorld.