It seems to be a good time for brave cover versions at the moment, with these two being my pick of the crop...
Tunng do their folky bleepy sampling thing to a version of Bloc Party's Pioneers [listen], on their new "The Pioneers EP."[buy]
Also available from bleep.com, by far the best legal download site for indie labels, is this cover of a Kylie classic [listen], given the acoustic treatment on Jose Gonzalez's "Stay in the shade EP" [buy]
Both cover versions sound like something that would fit perfectly on Gravenhurst's excellent recent album "Fires In Distant Buildings."