Well! I am currently running an Ads code and ads links on my site! I placed them just above each other (Ads code up and ads links down). But it looks awful with two seperate blocks and have the same tilte "Sponsored links" My question is "is this possible to edit Google's code to link this two ads together". Well! just add google ads and google links in one page and separate by one </hr> ..... I hope you get what I mean ....
You cannot alter the code much according to their TOS, Adsense does give you a wide variety of formats for showing mutliple ads in one block, if it looks ugly maybe move the adlinks somewhere else on the page and use a larger adsense block.
Change the border to the same color as your background is then it looks better I guess. At least it doesn't have a box look.
You cannot change the javascript code at all as provided by Google. That is good way to get banned. I dont see any harm putting a <hr> between 2 different ads without altering their codes.
You have to keep certain parameters in check though..the obvious ones like the ad dims and pd. If you know some html just mark it up and change any of the design parameters
there's an interesting post at problogger.net on this issue. check it out " Google Adsense are testing new ad formats that allow publishers to have greater control over how many ads are show and what the overall size of the ad block is. "