continue....
Select "Customize"
Let's Add a Page Element. From the main customization screen click the link that says "Add a Page Element" (Use the right hand column box - not the one on the bottom of the page.)
You will get a pop-up screen with a lot of Page Elements listed on it.
Let's add Adsense to our blogs. Click the Adsense "Add to Blog" button. If you don't have an Adsense account follow the instructions to get one. You will get a publisher ID from Google that will enable you to post adsense ads on your blog. Once you have this pick a Format and use the Blend Template option regarding colors. (it's the default).
Update: Note - if you want to use adsense channels to track your blogs then you will have to create your Adsense code in Adsense Setup in your Adsense account and then copy/paste the code generated into your blog manually. Don't use the "Adsense" element for this - use the "HTML/JavaScript" element and paste in the code after the box opens.
For right hand column ads I stick to the 160 x 600 vertical Banner Format.
Click "Save Changes" and you will notice that an Adsense box has been added to your right hand column at the top.
Click "View Blog" and see the results.
That's All!!!!