Ad copy development is a key component of campaign set up. Ideally, you're not even going to start with ad copy until you have the keyword list completed and broken down into campaigns and ad groups. I'm going to assume you've done this and start with the five key rules of writing ad copy. Yes, I like rules and I like numbered lists.
Google Ad Specs (for ads in English):
Title = 25 characters
Line 1 = 35 characters
Line 2 = 35 characters
Display URL = 35 characters
Different countries have different specs though - here are the details on that.
Yahoo/Bing Ad Specs
Title = 25 characters
Body = 70 characters
Display URL = 35 characters
Here are some additional resources: