If I have a navigation menu and adsense very close with something saying 'nav' pointing towards both the nav and the adsnse. Would this be illegitimate.
I have read, that Google adsense ad doesn't like to be placed near navigation when ad color is same as navigation. You can try to put a border with difirent color than background on the ad, that would help I think.
mm.. ok What about this, you have no navigation, just a single content page with an adsense bar at the top.
I think that might work. Just don't try to make people think different than that is. I'm talking about that the ad has to look as an ad, and google will have no problem with you. Good luck