I found a site where we can make our own toolbar ( i think u know that ). They are offering us to include adsense in it. Such that when something is searched from our toolbar, then our ads will be placed on that page. Is it against G's TOS.
You are allowed to create a search engine on your site using the google API which can show adsense adverts next to the search results. If the toolbar simply sends the search queries to this page using a GET form then it will be fine.