Is this against the TOS? I'm guessing it is but just wanted to run it past some other eyes.... Would it be legal if I pulled out the list bullet next to the ad?
Google will have to give you the definitive answer, as always, but from what I know, and have seen, this is a common practice, and isn't a violation.
I think it's fine, it could be blended better if it was 1 link only (halfbanner) and the links above had each an explanation below written in black. To make it safer, a thin light coloured - barely visible - horizontal line just above the ads will spare you the trouble.
whats the address for contacting Google about this. I'm still not so sure on this one. Anyone else care to chime in on whether the image above constitutes a TOS violation? Is it really common practice? http://www.goculver.com The section in question is in single post view on the blog.