Well, it appears that after my little discussion with Ryan this morning JotSpot has decided to update their FAQ (not yet present on their website).

 The new FAQ for anyone looking at using JotSpot's affiliate program is:

Q:  Where can I run your ads?

A:

You can run our ads on websites or emails that you own and control. We recommend that you put our ads on blogs and other websites you own.

You are NOT permitted to purchase advertising that competes with JotSpot in an effort to drive traffic to your affiliate pages. In other words, do not buy ads on Google or Yahoo if JotSpot also bids on those same ads.

If you wish to purchase an ad when the ad does not compete with JotSpot's ad, you may NOT use JotSpot in the ad copy, and you may NOT send traffic directly to our landing page.

Of course, after my experience, I wouldn't suggest using JotSpot until they come up with a real affiliate agreement written by real lawyers with real specifics.