I just e-mailed G to ask them this, but unfortunately, they don't really respond to our questions. So I'll ask you guys; In regards to the policy: May not place misleading images alongside individual ads, would http://overhearddaily.com/miley-design.JPG be against this policy with the 4 images above and the 4 ads below.
Not sure, but I think the ads are too close to the images, I suggest you create a little space between the ads and the images.