Sandy, I had similar problems. At first, I was convinced it was GoDaddy that wasn't keeping up with changes in WordPress. With problems I experienced with my WordPress hosted account over the past two days, I believe the problem is with WordPress--probably with the interaction of WordPress and Google, which sponsers AdWords. As with you, AdWords is not functioning on my GoDaddy based site. In spite of the fact that my GoDaddy hosted site was recognized by Google, the recognition has not only disappeared in via WordPress, but cannot be found. WordPress has been making changes that may or may not be shared with appropriate resources, too, however. Although I was trying to reply to this post and I was already logged in through my WordPress hosted account, I was directed to log in. When I tried to log in with my account information, the response was that my ID was not found. I had to re-register using my full email address. Then, when I logged in with the "new identity," a message appeared saying I was already logged in, why do I want to log in again? WordPress has been a frustrating experience recently, and I need to write a note of apology to GoDaddy for blaming them for the problems.
If you find a solution to the AdWords problem, please post it here. You are not the only one having difficulties with this process.