Alright. I guess that only makes sense. I can't complain, you guys are doing a great job getting everything rolling!
I did some further digging into the album art situation. I found all the artwork and ithumb files (about 450mb in size) in the Media Center's temp directory (under docs & settings). I then looked under the filesystem within the iPod and found that the coverart files were never transferred to the iPod. So using the SSH program, I transferred the ithumb artwork over to the appropriate directories and now my album art works perfectly! The funny thing is, if I sync a few files to the iPod, the artwork works okay. I have a feeling that with a large playlist transfer where the ithumb files become very large in size, Media Center never completes their transfer to the iPod. I don't know if this is the case with unjailbroken ipods, but it's something to be aware of whenever you guys start working on it.
Anyway, thanks for your support!