Will answer the second part first. Just delete the ads code from your HTML/PHP souce code Back to first part: Ads doesnt affect the PR, unless they are a direct link. If you are using javascript for putting ads(like google, contera, YPN), nothing to worry. If you are putting direct text link, you can add a rel = "nofollow" attribute to anchor tag to prevent pr leak.
Most sites need ads to earn money. I agree with the no follow urls so you do not loose any page rank.
how exactly does this html code read?...and where exactly do u put it?...i ahve a lot of direct links on my site....i need to add this code right?? please help.... thanks tony
Too many ads reduce the linkability of a site, hence they negatively affect serps. It's indirect and not an algorithm thing.