More news with Google Boosting AOL's Content in SERPs from a WebmasterWorld thread named Google Will Start Using Graphical Ads in SERPS! Moderator, martinibuster links to a NY Times article and quotes one piece;
at AOL's request, Google would begin to test various forms of graphical ads, and that it would make the same formats available to other advertisers... One format being discussed is a box, which may include a photograph and a logo...
An other article at Hendersonville Times;
One format being discussed is a box, which may include a photograph and a logo, that would appear on the main search results pages toward the bottom of the advertisements in the right-hand column. Traditional banner ads may appear on Google Image Search and the Froogle shopping site, which already include many photographs, an executive involved said. No advertising is contemplated for the Google home page.
Shame, Shame, Shame.
Update: Danny has a wonderful write up on this topic.
Forum discussion at WebmasterWorld.