I know most of theproxy sites get over 1k uniques a day and earn lots of $. but im not sure are they earn from google adsence or anyother site like adbrite, cliksor, etc I asked this because some some ppl dont like proxys and say its iligel. can u guys plz show me the correct path?
there is nothing illegal about putting Adsense on a Proxy and a Proxy itself is not illegal. Some users may use your proxy for illegal purposes but then somebody could also use your car to rob a bank... Note however you should not put Adense ads in the proxified pages otherwise all clicks may look like coming from your server, just put it on the main proxy page.
As was said above, put adsense on main page. But what i do is put widgetbucks on the proxied pages. So far its been a great combo.