I am not sure about it whether its right according to TOS or not. Here self site targeting means targeting your site #1 from site #2. And both are having adsense on them.
nokia's asking if it's alright to put a link in #2 to #1. essentially letting visitors know that you ahve two sites. yes i think that's permissible.
It is alright,but better u put Direct link instead of wasting Money to divert visitors to your Other site.
I hope I understand you correctly. I have multiple sites with adsense ads on each one, and each site has links to the other sites. Each site uses the same Adsense account. There have been no problems with Google and there's really no reason that this would be a problem. Did this answer your question?
It is fine to have Adsense on 2 sites that you own that link to each other (if that is what you are asking which I'm still not sure about)