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What are the best size banners to use either for Adsense or paid banner advertising?
Adsense recommends the 336x280 Large Rectangle, the 300x250 Medium Rectangle, the 728x90 Leaderboard, and the 160x600 Wide Skyscraper. You will need to consider proper placement of ads on your blog to ensure maximum user response as not all ad sizes will work on all types of sites.
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Using a large banner at the top of your blog seems to be a popular option now, but it can make your site look junked up. So you will want to use this option sparingly.