Add the div to post.main.php not the item block, i.e. after the div that includes ( _item_content.inc.php)

Ah, thanks I will check that out. (Although, in reviewing Google Adsense terms of use, it seems ads between each post would create more than the 3 allowed ads per page so my idea may not have been a safe one to begin with.)

You could limit the main.posts to three per page or put an if statement to do every other and have 6, or just do the first three of any number.

I think the approach I'm leaning toward right now is a leaderboard-style 728x90 across the top, always visible, and then a 200x200 near the top of the sidebar, and a 3rd inside each post, just below the MORE>> link.. I already hacked a new MORE button in the editor which automatically inserts the MORE code, an empty line, and then a 728x90 horizontal ad.. this will limit the ads visible on the main post view to 2 and once inside a post the overall page will display 3 ads..

I'm also exploring other ad networks besides google. Some of them are pretty good and can be used alongside adsense ads.

jj.