SpookyFrank
Don't swallow the cap
The Manics did a covers album that neatly spanned the sublime (we are all bourgeois now- McCarthy) and the ridiculous (last christmas- Wham) via an awesome version of primal scream's 'velocity girl'.
Any one mention killdozer yet?
edit: well timed keiron. balls. Ok, how about edit name in here in a sec.

Guns N' Roses did a couple of good 'uns - there's a live cover of Sailing that's fucking awesome. Um, has anyone mentioned The Beatles yet?
but 
The Sonic Youth cover of I Wanna Be Your Dog on Confusion is Sex isbut
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I like Sonic Youth's version of touch me I'm sick more than the original.

I like Sonic Youth's version of touch me I'm sick more than the original.
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i've a 7inch of bonnie prince billy doing puff the magic dragon...Bonnie Prince Billy - Going to Acapulco
Stuart Staples - Puff the Magic Dragon

What about the Afghan Whigs? They've done loads of excellent cover versions. For example:
Lost in The Supermarket
Creep
If I Only Had a Heart
Can't get Enough of Your Love, Babe
Supersition
Moon River
....I could go on
actually yeh, they could win. especially in their later live sets when they'd go through about 4 covers and back to whatever they were playing in the first place.
Dulli's solo covers have been good too - his cover of Hyperballad is gorgeous
That brings me nicely to Mudhoney - Hate The Police. Fucking quality track and I'm 99% sure it's a cover.
The sheer variety of their covers is what makes them stand out, and the fact Mr Dulli has a way of making a cover his own.
Yer man's voice got on my wick a bit, and they'd run out of tunes by the time I saw them play ('92).Ooh no I prefer the Mudhoney one.
That brings me nicely to Mudhoney - Hate The Police. Fucking quality track and I'm 99% sure it's a cover.
Yer man's voice got on my wick a bit, and they'd run out of tunes by the time I saw them play ('92).
i've a 7inch of bonnie prince billy doing puff the magic dragon...

What about the Afghan Whigs? They've done loads of excellent cover versions. For example:
Lost in The Supermarket
Creep
If I Only Had a Heart
Can't get Enough of Your Love, Babe
Supersition
Moon River
....I could go on