I've done a small tutorial on KW research for adult
http://www.adultking.co.uk/market-sa...les-for-adult/
I would always start off with a minimum two word starting keyword.
Then I would filter through relevant keywords until I come up with around 20 which have good traffic but low competition.
I wouldn't touch the SEO Competition module until I had done that.
Checking your competition is pointless until you add content to the sites targeting the keywords you research, because you don't know how much better those sites could do with keyword targeting.