I guess Google Adsense referal program is having some issues with it. I tried to select Image based referal advertisement and inserted the code. But to my surprise the advertisement were not being displayed. At one of the instant, the advertisement was directing to some url (not a google one). I tried to resolve it by bringing it to notice of google staff, but i found a soultion for it while replying to one of the Google's mail.
I found the text based links working fine. I would say that its good to have a text based referal link than image based. With different fonts, colors, you can make them work well with your design.
I guess this is just a small issue that will be resolved pretty soon. But to be on safer side, I will be going with the text based advertisements.
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