Right now Google +1 only affects the ranking of the people who +1'ed the page and/or their contacts. From my initial experiments the day it launched, and this may have changed since, if you plus one a link on page 7 it will jump to page 2, and one from page 2 will jump to around the middle of page 1.
Contacts do not always appear to be reciprocal for +1s to take effect (or at least they didn't at the start it was looking like this may have changed shortly after it was launched). By this I mean if you add someone to your gMail contact it was effecting their personalised search results. This, to me, is a bug as if all it does is encourages email harvesting to directly effect the SERPs of people who actually have no contact with your what-so-ever.
Google were unwilling to answer questions regarding this at the time, but as I say, I've not tested it since around the initial launch
Going forward they have confirmed that it will directly effect personalised search but it will not effect adwords ad other than as a visual representation to try to encourage better CTR