I run Ubuntu 11.04 with Nautilus Elementary. Is it possible in Nautilus to use album art as an icon (miniature) of a folder where the album is stored?
Yes. Add the Cover Thumbnailer ppa, and install cover thumbnailer from the software center. It will automatically set your covers as the folder icon.
To add the ppa, open your software sources and add:
Then install cover-thumbnailer from the Software Center.
Or, run the following in a terminal: