Its pictures next to "individual adsense ads" that is the term they use on teh Google adseense TOS. so it depends on how you will interpret that. To some people they are very cautious annd not put any pictures beside the ads. But you can go back on the TOS and read it again. but that's how I interpret it. Thanks Shelly
You need to define this better. Blending the ads is allowed and is recommended by the Adsense Optimization team. As for the solution, I believe you just need to label the ad block as "Ad" or "Advertisement" or "Sponsors (Not sure if you are allowed to use that one"