Yes, I would say it does... since the other advertisement looks like a Google ad and is placed on the same page as a legit Google Adsense ad.
I don't know if it does - it has AdSense and Yahoo/Oxado ads on the same page, so the question is do these ad types look confusingly similar? Not to me they don't - the Oxado banner ads auto rotate and are only a single ad whereas the AdSense banner contains a double ad. I think the answer is 'it's in the eye of the beholder' whether this site is breaking the TOS - only Google could give a definitive interpretation.