Another way too answer your question:
I store embedded and folder.jpg for all music (mainly flac and mp3).  I
tend to try to find the highest resolution artwork I can (typically in
the 800x800  to 1500x1500 range unless it's obscure). It doesn't cause
me any performance issues AFAIK. 

What is your server?  If it's is very slow/underpowered then you might
have issues.   I'm running this on an HP microserver, but used to also
run it on an aged XP box.  It was also OK on that.  
Are you looking at using the Touch in "standalone" mode?  If you are
then you need to consider what to do as the touch is apparently slow
with art.  There are threads about this, but haven't tried/experienced
this myself.



Louis
'Last.fm' (http://www.last.fm/user/lrossouw)
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