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Rodney - 8:36 pm on Dec 18, 2006 (gmt 0)
I've seen that one pretty often as well, but I thought it was covered pretty clearly in the policy clarification. It also seems to be virtually the same as the vertical thumbnails they showed in their example; showing both methods might have covered all bases though just in case someone didn't understand the plain text explanation they gave.
What one sees far more often than their examples is 4 images in a horizontal row ( usually near the top of the page pretending to be thumbnails and their associated nav links ) with text link adsense ( the part that is intended to be taken for the nav links ) precisely lined up under each image and less than 10 pxels below it