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1. Hmmm. Come to think of it I've managed to show ads when I'm testing changes on a localhost. So that might not really indicate anything. The problem might be that the Adsense bot is not able to crawl your pages. Try checking in your logs if Mediapartners-Google has been around recently.
Also try setting in your preferences in Google Adsense public servicese ads to be showed when there are no other ads to show. Try selecting the 468x68 not only for text but for images as well. I guess those changes would generate you some new code.
2. Sure. I'm running
this site with FCH and Adsense for quite a number of months. Notice I have 2 ad areas: the top and the bottom left block. Ads are mostly served in the top area. If any relevant ads are left they'll show in my left area. Thge average number of shows and clicks has remained roughly the same before and after applying FCH.
Just a short explanation why caching won't stop Google ads: your code consist of some parameters (your publisher id, id of channel, type and colour scheme of ads) that are passed to a javascript somewhere on one of Google's servers. What happens is a user loads a page and his (or hers) browser first gets the parameters for the ad and then downloads the significant javscript code from Google and then executes it. I would actually recommend turning on caching for a block with google ads.
3. I see you are running the ads through the XOOPS banners administration. Try pasting your code directly into your theme in place of <{$xoops_banner}>. Come to think of it: do that first before anything else.
Humans need fantasy to be humans. To be the place where the fallen angel meets the rising ape.