Memcache problem

When using memcache caching with ad module approved and offline ads are also served. I have put some ads into offline mode but they are still showing up in rotation. When I disable memcache ads are not displayed any more. Putin ad into offline mode gives me this drupal message:

function(ad_cache_memcache_adcacheapi) action(offline)

I have tried running memcache cron and ad cron and offline ad was still showing up.
This is what debug=2 gives me.

ad_dir: '/home/rzlender/redesign/www/sites/all/modules/ad'
debug: '2'
adcache: 'memcache'
nids: ''
tids: '429645'
hostid: ''
url: ''
quantity: '1'
aid: '0'
ad_display: 'javascript'
Attempting to include cache include file '/home/rzlender/redesign/www/sites/all/modules/ad/cache/memcache/ad_cache_memcache.inc'.
Drupal bootstrap '0'.
Override smtp_library: './sites/all/modules/smtp.inc'
Override cache_inc: './sites/all/modules/memcache/memcache.inc'
Override memcache_servers: 'Array'
Override memcache_bins: 'Array'
Override sf_cache_enabled: ''
Root drupal directory detected as '/home/rzlender/redesign/www'.

/home/rzlender/redesign/www/sites/all/modules/ad/serve.php: // $Id: serve.php,v 1.1.2.2 2007/10/19 02:46:40 jeremy Exp $
/home/rzlender/redesign/www/sites/all/modules/ad/ad.module: // $Id: ad.module,v 1.2.2.29.2.79 2008/06/28 00:15:36 jeremy Exp $

Memcache: entering ad_cache_memcache().
Memcache: retrieving hook info from cache.
Memcache: selecting from the following ad id(s): 919245, 919246.
Selecting 1 ad(s) from 2 total ad(s).
Randomly selecting ad: 1 of 1.
Invoking adserve hook 'adserve_select' in memcache cache.
Memcache: retrieving hook info from cache.
Memcache: adserve_select: no select function defined
Default ID selection in adserve.inc.
Randomly selected ID: 919246.
Displaying AID: 919246.
Memcache: increment action(view) aid(919246) group(429645) hostid(none).
Memcache: incrementing ad-view-919246-429645-none-2008072108 (7)
Invoking adserve hook 'adserve_init_text' in memcache cache.
Function 'ad_cache_memcache_adserve_init_text' does not exist.
Invoking adserve hook 'adserve_exit_text' in memcache cache.
Function 'ad_cache_memcache_adserve_exit_text' does not exist.
document.write('\x3cdiv class=\"image-advertisement\" id=\"ad-919246\"\x3e\x3ca href=\"http://www.redesign.rz.d2.nowpublic.com/ad/redirect/919246/429645/\" title=\"Crowdpower\" target=\"_self\"\x3e\x3cimg src=\"http://media.le.ae.d2.nowpublic.com/promo_crowdpower1.png\" width=\"300\" height=\"250\" alt=\"Crowdpower\" /\x3e\x3c/a\x3e\x3c/div\x3e');