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Hi Dan,
I wouldn't advertise based on PR; great way to lose it. Chances are they are after your visitors anyways. I'd say $50 a month and put the links nofollow as they are paid. Just my $0.02
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If they want the link juice, PR 3 is a tough sell sometimes. PR 4 is where the money starts coming a little bit, but PR 5+ is best for that stuff. You can probably charge $10-15/month if you're dealing with a fool.
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The general rule is $1 CPM ($1 / thousand page views you get per month).
Work around that.
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You should advertise at the maximum you can get for them
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