They say its free if you get a AdMob publisher account.
Quote:
"You get 50% of the AdMob impressions -- no strings attached -- and we get to make Andromo a free service. It's a win-win proposition for everyone."
They also offer to remove the adds from your app if you want to sell it on the Android Market for $99. I believe this is per app.
Quote:
"That's right. Only $99 to remove all the ads from your app. This is ideal if you want to sell your app on the Android Market. It's also the right choice for business, professional and promotional apps. And it's only $99 during our beta launch (regular $199)."
The Admob account is only if you want to share 50% of the ad revenue. The andromo forums have had some queries regarding ownership and their official answer appears to be that the content is yours but the packaging is licenced to the app maker. I've read somewhere that in the end user agreement they do state that you agree that they can also sell your app if they wanted (outside of the android market). Based on the licensing it does appear though that they appear to handle all the sticky codec issues (mp3 use etc) but don't quote me on that.