Check out what they wrote in their letter to LiveJournal:

I have contacted these advertisers and informed them of where their ads are placed. I have had nothing but shock and thanks for my efforts. These ads are placed through Google Adwords and Google Adsense. The companies buying these ads do not know that they are paying for representation on web pages that list interests as "child abuse, child f***ing, child molestation, child porn, child sexual abuse, f***ing kids, f***ing little kids, f***ing young girls, kiddie porn, child sexual abuse, incest" and more. ... It’s time to value child safety above free speech. It’s time to do the right thing. If morals will not compel you to do this, then maybe loss of advertising dollars will.

So, yeah, if you ever thought there was nothing wrong with LiveJournal taking ad money, here is proof positive.