If you are like me and the thousands of others that don't read the Google AdSense TOS, then this will be new to you. A thread at Search Engine Watch forums named Google AdSense in desktop applications asks the question if you are allowed to embed Google AdSense ads in desktop applications.
Jensense who is a whiz with AdSense and has read the TOS more then once, replies with a sturdy no. She quotes the TOS, "No Google ad or search box code may be pasted into any software application." And in addition, someone says, just make a Web based application, so the ads are served up on HTML pages. She explains that doing so "would still be against the terms, people have been warned because they did this very thing."