Is it now walking a fine line to make adsense text links blend in with your navigation? I read something about it being risky to make them look like your navigation links. True or false?
I'm not quite sure; but if by placing it there will make your visitor be deceived, don't try. It against the TOS of adsense.
If it is deceiving the visitors in clicking on adsense ad even if they are not interested in the product, it is not allowed. The question is why do you want to blend your navigation with adsense for links?
This article maybe of some help to you, not sure how accurate or true it is http://seotips4.com/87/google-adsense-blending/
I didn't particulary want to, i just noticed that my adsense ads look like my navigation. I'll have to change it.