Placement is fine, but i suggest to change the background colour of the ads. Better make it same as your templete background
I don't know whether it is intentional or otherwise, but it seems that the ad format which you are using does not fit into the sidebar and thus cause the "ads by google" wording becomes almost hidden". This could be an issue with the TOS.
I think you are using "large-rectangle" adsense format(it is not fitting in your template). It will be better if you use any Vertical format like 160X600 format.