I've looked around and haven't found anything on this specific issue. Is it against the TOS to use a site like MySpace to advertise? I'm working with MySpace's MyAds, which is a PPC kind of thing. I had to upload a banner from my computer to MySpace since they don't let you link from another site, but obviously made the link my normal affiliate link. Will this cause any problems?
nope, it should be fine AS LONG as it's in the advertisers TOS and you are driving PPC traffic not myspace spam...
Its not against the TOS to use PPC. But there are people who use blackhat methods with myspace. Infact many guides are being sold here teaching you how to use the blackhat techniques with myspace. There are even people selling myspace accounts and so on.. Using such spam could get you banned but ppc is fine.
Yes, of course it's fine. As far as blackhat MySpace traffic, it is generally frowned upon. But it never hurts to ask your AM if they would accept the traffic. Some networks are more flexible than others.