recently added Blogger Images that allows you to upload up to 300mb of images.

In order to provide the image layout options, Google added an HTML code to wrap all posts in a <div clear:both> tag.

This update changed the formatting of my blog and the Google Ads no longer blend with the text. This is when I din't even upload any images.

Google engineers reacted quickly and have introduced a new setting to suppress that markup.
How To Use The Setting

1. Sign in to your Blogger Dashboard
2. Click the "Change Settings" icon next to your blog
3. Click "Formatting" under the Settings tab
4. Choose "No" on "Enable float alignment"

Please note that suppressing the markup will result in layout problems when using left or right alignment for images. You should only change this setting if you are currently having trouble with normal posts.

For those who want to refrain from changing the above setting, Matt has posted a quick fix:

.Post div { clear: none !important; }

Simon Waddington adds: Thankfully the fix by Matt works great, just don't try putting a comment above it.

Nathan points to another fix

Just add the following code in your template, right after the style tag:

#main #menu {
position: absolute;
right: 21px;
}