If you're an Adsense publisher, you can surely understand arran's point in this WebmasterWorld thread:
When considering the TOS surely you have to apply common sense?Scenario : I want to change my text color from 000000 to 000033.
Option 1.
Log into adsense, locate my template, make the color change, regenerate the code, copy it to my html.
Option 2.
Change 2 digits in my html.
Surely people with even basic knowledge of html are not choosing option 1.
I believe editing the code in any way does break the Adsense TOS. But in that case, I think about half of us have broken the TOS! Hopefully AdsenseAdvisor will speak up on the issue...