User choice a very good thing to add, I tag all my albums with tag&rename and it adds the albumart as folder.jpg to the folders.
WMP gives it all sorts of weird random numeral names and scales the art up/down to 200x200 files. On top of that: it picks the wrong art on numerous occasions, especially with lesser known albums.
oh and for the record:
I don't use Winamp, I use Foobar2000.
that's not a big issue, since Foobar has a plugin that emulates the Winamp API.
(you can find it at www.r1ch.net)
edit edit edit:
well color me suprised, cd art display does exactly what i wanted and it accepts id3v2 input, folder.jpg/cover.jpg and any other input.
just had to tell AMIP to stop sending the song information to msn and every worked peachy.