I'd say with reasonable certainty that it is against TOS, but you can always drop Google a line and ask for clarification. In this case, I would not run with that arrangement unless Google sanctioned it, and I doubt they would.
You can try to contact Google AdSense Team to get more answer. Contact Google AdSense Team: http://earnmoneyfromblog1.blogspot.com/2007/06/contact-google-and-tell-them-your.html
Thank you so much everybody placed some other ads their and will make a space in the left column to put the arcade exchange banners!
i have checked the web site. they have changed the pictures near the ads. it's not against the adsense tos
I don't think it's having the pics themselves, just the words 'PLAY NOW' & 'PLAY GAMES' - it's the equivalent of saying 'click here,' which is very bad juju. If you had just the images without any words within, that should be okay.
"Undue attention" Those images served no other purpose than to highlight the ads. If they had another purpose, their position may have been within Policies. As they were, however, I am pretty sure they were not within.