chango, I drop and drag(cut-n-paste) covers into \eBooks\.thumbnail all the time...might have to do with which operating system you are using....
I am running Windows 7 Ultimate 64-bit, I connect the Novel to the computer via usb, and use Calibre to move the ebook to the device, then go into windows explorer, open up \eBooks\.thumbnail, and drop and drag the cover over, then edit it so that it is smaller that 10 kb, mainly by resizing the cover with paint...
just my 2 cents
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