[al3bed]

1) Is it possible to show text ads only in the ads after the first post? So no flashing images but just text. The rest of the forums can contain image ads but I don't like the looks of it underneath the first post.

yes it possible, but not with options (may with next releases) try do this:
Go to you style templates and search for: ain_adsense_postbit

find:

PHP Code:

$vboptions[ain_adsense_code] 


replace it with your google code that only show text ads.
it should be work!

about profitable ads, depending on statistics, google optimization team and vbulletin team they found that Text ads are less invasive to your users but not as effective. it's not about which one is more profitable.. it's about which one is more clickable.

2) There is an option to auto-reload ads on your forum. Enabling that option, would that mean you can impressions every 60 seconds and if so, isn't that against Google Adsense policy?

there is no term prevent from reload ads. auto-reload is like when you refresh your page, but this mode refresh only your code without the whole page every x second. if google adsense team overseeing every reload to check if it's a user reload or auto-reload there server will be like bombed hell.

I think that option is not very useful you better to disable it .. if you want.