1) 301 Redirect causes "Some Loss of PageRank".
You need to change the http://www.madonnafans.info/index.html to http://www.madonnafans.info in the navigation bar even though you have done a 301 redirect. The reason is that a 301 Redirect causes "Some Loss of PageRank". You read more about this in the following interview: Matt Cutts Interviewed by Eric Enge - Google Crawl and Site Architecture
2) Google AdSense Ad Formats
I recommend using the Large Rectangle (336 x 280) blended into the content and a (336 x 280) ad underneath the content. Ads in the sidebar and outside of the heatmap don't generate many clicks.
It can sometimes be difficult to use the 336x280 format due to the template. The following should also work well with the content and underneath.
Square (250 x 250)
Medium Rectangle (300 x 250)
Here's a reference to adsense ad formats:
The celebrity niche is good for traffic. I don't think that it will be cost effective to SEO a domain into the 1st page results for a high profile celebrity like Madonna. Content is a good way to get some traffic. I recommend using the google auto suggest to identify keywords to target. You could either include some information on the pages to target the keyword. Another idea is to put up a page with a short article of 200 words aligned with the title and page name. The short articles don't need to be included on the menu. Just use text links from content on the other pages. Kind of like wiki. One keyword that I identified is "madonna face lift" which is actually a high paying niche.