You can read Matt Cutts' full explanation here.
Basically, if you have SOME ads above the fold, you're probably okay.
If you have a LOT of ads above the fold, you may lose your Google rankings.
If you *ARE* in the "less than 1%" of queries affected by this algorithmic change, all you have to do is change your site design and let Googlebot recrawl your site. Then you wait a few weeks and VOILA! you should be back in business.
He says....












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