What type? Simple, non-intrusive ads
Where? Top and right side, not in between posts.
Banners? Yes, as long as it doesn't flash, blink or annoy me.
Flash? No, it slows down the site and gives advertisers license to add the annoying "look at me" effects.
Animated? Same as above.
Within posts? Only if it's on the top and right, not in the post.
Inbetween posts? No.
Left side - right side - top or bottom? Top and right.
Sell them ourselves or use a network? Sell it yourself. Don't use 3rd parties.
Which network? N/A
Does it hurt our quality? No. You have to pay your bills at the end of the day. Just don't let it get obnoxious.
Do you trust sites with advertising? Trust is build through excellent content, not advertising. As long as your content isn't overwhelmed by your advertising, you should be fine.