OK, we've taken a deep breath after the excitement of last week's news that online RSS reader Newsgator seemed to have added contextual AdSense ads that would appear next to some blog posts. From what I've heard, this was an early release of a planned offering that was pulled because of "formatting" issues. That differed from what Jason Calacanis, CEO of Weblogs, Inc heard, which is that this was a mistake and nothing like this is planned.

In the meantime, Jason takes on the issue of advertising being placed by a third-party next to Weblogs, Inc. feeds. He makes it clear that Newsgator is not stealing the WIN content but also makes it clear that putting competitive ads in the full-text feeds is not cool and he will explore options to deal with that happening.

As I've mentioned, I'll be speaking to someone from Newsgator about this tomorrow and will have more details then.