It is amazing what some sites will do to get a click! http: //www.webshop4photos.com/info.php?idPhoto=1014&photoName=Beach (I put a space in the link)
This "image next to ad" thing is getting out of hand. I wouldn't be surprised if Google puts their foot down and makes an ultimate decision to disallow this sooner rather than later.
Google has implement new ads format, an image inside your ads, I have seen it on one of my site in 160x160 format, but to late to capture it since I have just notice it as soon as I click on another link, keep track on it and you will see.