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I have seen on a few websites/themes eg (http://www.adsensepress.com/maxctr-wordpress-theme) which put content above or below the adsense ads and make them look like the ads. Is that acceptable? I read the Adsense TOS and it doesn't say explicitly anywhere that it is not.

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Well I found the answer here.

http://www.google.com/adsense/support/bin/answer.py?answer=32849

You're welcome to display Google ads on the same site or page as other third party advertisements provided that the formatting or colors of the third party ads is different enough from that of the Google ads. In other words, if you choose to place non-Google ads on the same site or page as Google ads, it should always be clear to the user that the ads are served by different advertising networks and that the non-Google ads have no association with Google. If the formats are naturally similar, we ask that you choose different color schemes for the competing ads.

Its not okay to make any ads look like google adsense ads.

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