Ya, I agree. The template really isn't doing anything for you, and lots of colors. Also, I thought there was adsense overload.
The ads placement should be ok. However, your main concern should be on how to drive traffic first before you look into other things. It is also clearly lack content.
Please change your blog's template, too plain and doesn't looks too professional...try to make use more of your sidebar...
Hi, Go with a 2 column blog template and with light colors. So far your Ad placement inside the posts is fine but blend the colors with your text colors and then see the results. Check details here.