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Ok, now about this if you are going to create categories:
1) permlinks to /category/posttitle
2) set # articles per page to 1
3) create a custom category page for each category, and instead of the full article(or a partial), only include the article titles, clickable of course.
4) Set up a robots.txt to now allow indexing anything but the category pages, and the main index. That way you category pages do not 'confuse' your adsense targeting, even if they are related.
That way you can have something like:
Homepage (with latest article)
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|--> category page (with multiple links to articles)
| |---->article1a
| |---->article1b
| |---->article1c
|--> category page (with multiple links to articles)
| |---->article2a
| |---->article2b
| |---->article2c
|--> category page (with multiple links to articles)
| |---->article3a
| |---->article3b
| |---->article3c
... ...
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