Another important piece: thumbnail size
Install TweakUI (free from Microsoft) -
http://en.wikipedia.org/wiki/TweakUI
Adjust the thumbnail size/quality to an enjoyable level. I like 200+ for very large thumbnails, but even 100 or 125 makes for a nice size cover.
See example config:
http://lifehacker.com/photogallery/tweakui/2831604