Check out this TOS violator. http://www.freephotosandvideos.com/ When you choose a video on the right, it loads up over the google ads and when you go to click on one of the video controls to pause/adjust volume/resize you could very easily accidentally click on the mostly hidden ad.
i am not sure if its againest TOS... he did'nt ask peoples that these are controlls... i dont think its againest tos.. well i am not sure enough!
I did not find any TOC violation... The Google Ad is displayed under the video. Also, there were no video controls there.
That looks like a coding issue rather than a violation. I like his idea for the website though, using youtube's videos for an 80's music vid tribute site.