Posted this keyword research info on my blog ages ago - specifically on-topic, though the Overture keyword tool is defunct now. 
Here are some basic steps you can follow:
1 - find a tool and read the tutorial, if provided - it's critical you understand HOW to use the tool and WHAT it's telling you
2 - paid tools almost always give you access to better data than paid tools
3 - free tools, though, are still a viable way to manage your keyword research efforts
4 - here's my basic process for managing keyword research:
~ I create a seed list base don the pages on my site, so if I have a site about Jeeps, for example, I might start with things like Wrangler, Cherokee, CJ, offroad, Jeep Parts, Jeep Accessories, so on and so forth.
~ I'd find these as I'd have a page targeting each item, so all pages I have - each page targeting a specific topic/idea/keyowrd, etc.
~ I'd then use my tool of choice to build a keyword list - the tools list volume of searches on related phrases, so it helps me see exactly what users are looking for.
*NOTE - I'm speaking in a circle here - typically you'd do the research from a seed list of ideas BEFORE you built any pages.
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