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Second issue is that i have an image hosting website. The site is having a very very low click thru, The placement is fine, but the users are not clicking.
Should i go to some CPM network which is paying based on Banner Impressions only? If yes, please suggest some with good payouts.
i have an image hosting website
I've heard those kinds of web sites have very low CTR with Adsense... same as the other thousands of clone sites on Flash games or proxies or discussion boards. You're probably better off finding other source of revenues (such as CPM advertising like DoubleClick) or maybe start another web site on a different topic.
Try affiate systems, try CPM ads if you have MASSIVE amounts of traffic, or try more aggressive systems like Adbrite who allow you to be a #*$! and who also look less like ads... It's against my ethics, but it COULD work ;)