It mostly works for me. The only thing is that every time I page up/down, the newly highlighted art shows a folder icon. I read another thread that mentioned it could have something to do with the label being too long and having to scroll. Guino has done some work on the latest version, but I haven't gotten around to trying it out.
I think I have organised my album art differently to everyone else.
My music is in C:\Music\<Artist>\<Album>
Browsing by album art doesn't really work too well when there is more than one album for an artist. So I have a separate structure for album browising:
C:\Albums\All\<Artist> - <Album>
C:\Albums\A-K\<Artist> - <Album>
C:\Albums\L-Z\<Artist> - <Album>
C:\Albums\Various\<Album>
C:\Albums\Soundtracks\<Movie>
Each album folder then has a folder.jpg and a playlist.m3u (or for multiple disk albums, disk1.m3u, disk2.m3u etc)
The issue that I have with this method is that not all SELECT methods work. (I don't have my browser.skin files here, so this off the top of my head). Only the SELECT works. Using SELECT+ or ADD1 don't do anything, so I can't add multiple albums using this structure. Not sure if its because they don't work on m3u's or something else..