The one that comes to mind is Rufus Wainwright's cover of "Across the Universe" (Beatles, of course) - actually the entire "I Am Sam" OST is excellent.
I also like how Alanis Morrisette covers "helself", I love her new version of "hand in my pocket".
But for me, some of the best covers in history must be by the Carpenters (A song for you, Close to You, Superstar, Solitaire, Etc.
I grew up listening to them. You should give them a listen!
I'll be back with more cheesy cover examples later ;-)
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