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just reading their tos and I guess it is only allowed for "non-commercial" use, so I guess that means that having any type of ad anywhere on the site would make it against their tos
and even google's rss search has the same kind of clause:
"Terms of use
We invite you to make noncommercial use of Google's RSS and Atom feeds on your website subject to these terms, Google's Terms of Service, and the Google News Terms of Service. If you incorporate our feeds onto your website, please also:
attribute the feeds to Google News.
attribute each news item to its provider, using the provider name as it appears in the Google News feed.
include a link to the Google News cluster of related articles for each news item, using the link provided in the Google News feed.
identify the search terms used to generate the feed"
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