[EDIT - I stress this is not the standard way of dealing with compilations, I have also tidied up this post]
Going back to
pic 1 above you can see I have an artist/ album view similar to your description. This is my desktop pc set up in early days and not exactly how I do it now on HTPC but it still works well I think. Others may chime in with alternatives.
Note I have a compilation album "A Woman's Heart". In this "artist/album" view it would normally show multiple instances of the same album, one for each artist (as neither of us desire).
So I named the [Artist] and [Album] fields (see bottom left of pic), " A Womans Heart" .
In addition I added "Mary Black" to the [Artist] tag for the tracks with Mary Black, "A Womans Heart;Mary Black". The colon allows tagging with more than one artist.
"Mary Black" will show up as a single thumbnail and clicking the thumb will open a window with ALL her albums INCLUDING a thumb for each compilation album she is in (opening to all her tracks on that compo album). Compilation albums will be shown once only in the main view.
Ther are a millions ways of organising media in MC. Now check out how clever Marco does it,
http://yabb.jriver.com/interact/index.php?topic=68960.msg464065#msg464065