I just recently moved to a new state in October of 2007 and just recently started to see personalized ads in Google SERPs. I was under the impression that personalized search was a feature only if Web History was enabled. Does this affect localized ads too?

Example of the ads I'm seeing:

farm3.static.flickr.com/2362/2 ...

<<I was under the impression that personalized search was a feature only if Web History was enabled.>>

This is related to your new IPs, not to Web History.

The strange part is I don't see these when I'm at home, I'm currently at the office and see the localized ads.