yes, because users see the little images and automatically think that the ad text next to it is related and mistakenly click on it.
I have had simmilar question and I contacted them just to be sure. They said it's ok (AT THIS TIME) as long as you have border arround the image or between image and ad.
You are right. I also think that design it's not ok. There must be a clear distinction between the ad and image areas (some kind of visible border between them, like a line, or box, or different background color...).
placing image does not break tos but using trajan on your site breaks google tos. kaspersky gives error when click on your site there is trojan on your site
Well then you should be more careful about what you post on this forum. I tried accessing the site twice and each time got a Trojan hoarse warning.
I've always heard that this is against the TOS, but I see so many sites that never get messed with over having this set up. And it is probably the best method to get clicks. I wonder what the final word on this is.
You can but images next to you adsense if you have a border between the adsense and images! If you have a website about cars have images of cars! don't have a image of a naked girl next to the adsense! have the images related to the adsense links