Thanks everyone, It clears up a few things. Looks like, inner-active it is then.
bjadams - yea I had suspected as much. However think I will give it a go. Will at least stop me worrying about how you pay income tax on these earnings.
I will need to do a bit more work on my app before it is finished, beta testers have came up with a few ideas and I will need to change the layout to fit adverts in.
I have decided to try Adds as apposed to selling. the reasons are
1) With Add supported I can just make the app freely available on my web site and tell people to copy it.
2) I don’t need, but can use the app stores for distribution if I wanted.
3) It is the only way I can see to make money with HTML 5 when support is released.
I will try and post my experiences of advert usage here, though I have very little spare time and my progress is slow.
If anyone else has anything to add (no pun intended) please do.