I block javascript unless the source is whitelisted, don't have flash installed, and use a browser that comes with an add-on called spyblock (it's kinda like ghostery). This seems to catch just about anything an adblocker should, and still allows webmasters who use basic banner ads to make money off me. I've tried tons of solutions to the problem, and this seems to be the most comfortable one.
re: ridiculous ads
I won't name it, but there used to be a website I went on that was meant for people to upload their writing. The content was split about 50/10/40 "normal" fiction, fanfiction, and erotica. The stories could be tagged by target reader age, and anything tagged adult would get pornographic ads on it... really pornographic ads. Problem was, the adult stories could be accessed just by including the adult tag in your search, or even if the site screwed up and recommended the user an adult story on the sidebar. The content wasn't segregated, so just clicking the wrong link could land anyone there. And they even throw up a "please remove adblock to continue using this site" barrier if you do block ads. :(