LOL. Google knew about my error 17 hours before I even created the webmasterworld post LOL.
Must be Google's new Unicorn Algorithm Update that predicts the future.
I found out the issue:
Some ads show a display URL that isn't the actual ad URL, so if you try to block the URL of an Ad that isn't actively advertising on Adwords you will get this message. "well at-least that's what I'm assuming, i could be 100% wrong!"
Some ad url's I can block, some show this message.
They still need to work on that blocking stuff. I get a lot of ads for local events (sporting events, etc) and right at the moment I'm seeing ads for basketball games that were played three weeks ago. They don't show up in my display ad center thingy, so the only way to block them is to block ALL their ads.