I would like if advertising was used to absorb costs rather than from the users.
I think the 125x125 and 200x125 look nice and dont take away from the respect of the site.
I think flash or animated would be too flashy but when the ads are targeted to real topics that are discussed then these cubes are quite effective. I have found many useful new companies from respectable ads normally found within web design blogs.
Putting them across the top and/or bottom are suitable- not in the middle of posts and not on sides since posts take up the width of the page- you wouldnt want to take away from that.
NO Google adwords- they are ugly and I dont give their ads any credit. Companies like buysellads are more in line (in my opinion- i am not a plug for them) with the direction of webmasterworld.
Thanks for the opportunity to say this :)