It's not a defect, I'm telling you.

I had the problem you are all having, and after syncing about six times (over a six day period) all of my album art was updated and working.

Basically what I did was chose the album info by right clicking on the album/song(s) and then selecting their correct information.
Sometimes I found that it would not add the album art to the songs, so then I would repeate this step. I would usually go throught thirty or fifty songs like this. No biggie.

One thing I do remember doing...When I added the album info to a song, I would usually wait till I had at least thirty songs to Sync. I would Sync them, then check if their album art was showing no the Zune. If not I would find the songs with the problem on my compturer, perform the album info search again (even if it was correctly showing on my computer) and then resync the songs, *when* I went to sync new music onto my device.

Swaping your devices out will not fix the problem. Supposedly it is a software "bug", and like I said in my previous post, Microsoft will likely release a Zune software update *before* the Zune firmware.

Mods, this thread is becoming silly, we've established this is a known bug, perhaps you could close the thread now.