Placing Image Near Adsense!

Google doesn't want any image to look like a part of the adsense unit or the vice versa, but as with all of the other TOS point, you are allowed a little grey
area... Oh yes, a border between the ad unit and the images as seen in the picture.

The border might as well be in grey dotted Lines :)

It, the placing of images near Images, had become an issue about a year back, when many publishers started putting ads below and near images. Jensense had written a post on it here.