Images - how close is to close?

I only came across this one because the owner had tried to hotlink an image from my site.
The question is, is the image/ad placement at the top of the page against the google TOS?

http://top-celebrity.blogspot.com/2008/01/lindsay-lohan-keeps-on-spending.html

 

I think you should a line seperator between both objects (adsense ads and images)..
google it and I'm sure you'll find the answer
GL

 

Thats not allowed as far as i know. He purposely put the images right above the adtext links ..