[Kipper is King]

OK- album art initially frustrated me on my ipod touch- i had problems like what you mentioned.

First of all, don't let itunes add your album art. You have to do it yourseld cuttting and pasting from the web song by song! It's tedious, i know- but it's the only way i have gotten album art to show up for every song on my ipod- and it sticks around.