http://www.holiday-clipart.com/christmas/christmas_clip01.html if you look down the list of links, you can see that the google ads could easily be mistaken for links on that site, since if i didn't know what google ads looked like, i would have just thought they were links on the site. is that allowed? because it seems as if they are tricking people into clicking their ads.
It looks like good blending to me. I see no TOS violation myself. When in doubt, email google, they'll respond.
The only thing that is against the TOS is that the top-ad-block hides the line where it says 'ads by google'. Other than that: good blending.
Right, you cannot have anything that blocks where it reads "ads by google" or similar. As to the other about your own links on your site, aren't your sneaky Of course no TOS violation, but you already knew that. Anything for website traffic, right?