I can't say enough good things about The Swell Season's cover of "Two-Headed Boy":
The Swell Season covers Neutral Milk Hotel
Actually, I can't say enough good things about AV Undercover, the series at the AV Club that produced it. It's a pretty wacky premise -- put together a list of songs, invite bands in, force them to choose one to cover, repeat -- but it's paid off wonderfully. The best of them either totally rejigger the source material, as when Frightened Rabbit played the Lemonheads' chipper "Confetti" as a finger-picked ballad, or stay close to original but with a crucial twist, as when Wye Oak turned the Kinks' "Strangers" into a duet. But sometimes, as with Swell Season, the act barely diverges from the source (Glen Hansard even does a pretty good Jeff Mangum impression) but are having so much fun that it doesn't matter. I can only hope The AV Club can secure the rights to sell these tracks together as an album; the only problem with the series now is the buffering time and Budweiser ads.