Please have a look at the screenshot of an inner page of my website.. Check the ads and the content of the page.. How irrelevant they are..
Is there some bug with adsense.. ?

How long have you been displaying adverts on the site?
It can take about two weeks before adsense start displaying relevant adverts.

Its been more than 2 months..

Is that screen shot from a search results page? Do other pages show relevant adverts?

I was thinking, It seems to be showing tour de france adverts, It may be because your domain is freelanceprojectupdates.com, Some people may have bid on "lance" as in "lance armstrong". If that is the case then they are showing related relevant adverts.

You could try section targeting. It may take time to see changes if you use section tageting.