Aargh! No! My wife owns this and insists on playing it around the house during the festive period. Guaranteed to turn Ebeneezer Goode into Ebenezer Scrooge.

Oh how much I agree with you! They somehow managed to preserve both the originality and their own unique style in literally every song. 10 out of 10 for this cover album.

I think I've only got two, one by Metallica and one by Def Leppard.

Norah Jones and Billie Joe Armstrong - Foreverly

.. a perfect record

Camille O'Sullivan Live At The Olympia has some intersting covers on.

Yup, REM's version of "First We Take Manhattan" is terrific.

I know this isn't an album but it's worth a mention:

Members of Beach House, Fleet Foxes and Grizzly Bear have been touring as the Gene Clark No Other Band, performing Clark's classic "No Other" album in its entirety. I don't know if they're planning to release an album of their live shows but they should.

Check out Robin Pecknold of Fleet Foxes doing an almost note-perfect version of Strength of Strings:

http://www.youtube.com/watch?v=aLjDEFDZXu0

One of the best live covers I've ever seen has to be the Zac Brown band doing Enter Sandman at the o2 a couple of months ago.

I love Coverage by Mandy Moore. I wish she'd done more albums like that.

Theres not many covers albums i like at all, But i hope this counts as its technically a covers album, albeit of her own material

Kylie Minogue - The Abbey Road Sessions

I absolutely love the versions of I Believe In You, Come Into my World & Finer Feelings.
Stunning.

The Carpenters - Interpretations

Queen II & A Night at the Opera - Queen
Crime of the Century, Breakfast in America & Famous Last Words - Supertramp
Closer - Joy Division
Debaser - Pixies

I think the OP means albums of cover songs rather than album covers?

I'd say the track listing on Kindred Spirits by Clan Of Xymox is hard to beat...but in general I'm not that enthusiastic about the concept of cover albums.

Beverley Knight - Soul UK
Macy Gray - Covered
Mica Paris - Soul Classics

Okkervil River - Golden Opportunities Vol 1 & 2.

The fact the band just give these albums away freely downloadable from their website is a cool bonus.

Joss Stone, The Soul Sessions is a beautiful record IMO. (wasn't too keen on Volume II though).