it can be time consuming and requires a little patience at first - I set my own up through trial and error Gman,Took me a while to master but was very well worth the end effect.
I have done a few friends Ipods since and found some interesting shortcuts on the way.
organise all your music in seperate folders(Artist name and Album name for each) Place all folders in a named folder and location of your choice.
Create another folder named "album Covers" on Your desktop or preferred location.
Go on-line and google "images" - Copy and paste each individual folders name into the search bar,choose image around the 500 x 500 size) this seems to be about the best size for clarity and uniformity.
Save "image as" - again paste Artist name and album title and save to album covers.
when all is finished, open up "Album Covers" in a small window and open up your music folder in another small window. simply drag and drop the corresponding image to its music folder.
Load your completed music folder into your itunes and voila you should be sorted! Itunes should now have images for each album.
if there is a dark image of a musical note, this will mean either no image loaded or is part of a compilation.
compilations might be scattered around as individual songs in your itunes, this can be fixed by right clicking the individual song. choose "info" and in the bottom corner there is a checkbox for compilations.
i know it seems long winded, but now it takes me about an hour and a half to put one together.
My Own ipod touch has 145 albums all done this way and it looks like a rollodex of albums - Truly impressive!
Hope this helps Gman.