No you can't place youtube video above the video ad.. because people will think it's a youtube video and click on it.
"No you can't place youtube video above the video ad.." what lol? I mean it's not a link,its actually a flash video embedded
deceiving placement = breaking the tos you can judge if your placement is deceiving or you can just ask the adsense guys.
having an ad above,under,left,right,or all around a video,there is nothing wrong with that. i don't know where 8everything got video ad above a video. image ads are mixed in with video ads,so it wouldn't be my job to filter out video ads that may be next to a video. now,having adsense on the same page as youtube videos is another question. yes they have copyrighted videos on youtube and it is owned by google,but it is best to ask the adsense team if it is ok.
Ok I got an email from google saying that it is allowed. So thanks for all those who posted their opinions