I got up early this morning (not quite sure why) and spent some time fixing up the cover art on about 900 songs (well, probably more like 80 albums, I could do a whole album of songs in one step) so they would display when playing on my iPod (and K's iPod). I've still got 4 albums that aren't fixed (I have to actually rescan the covers, rather than just snag them from storage, and I wasn't going to take the time to do that).
Both color iPods are resynced and have the new cover info now.
I also got a call back from iPodResQ, the $30 dollars for shipping and diagnostic was well spent, because it's only another $60 to get the click-wheel replaced and come Monday or Tuesday I'll have a working iPod 40 again. I did spring for battery replacement (since they've got it apart anyway, it's another $30). It doesn't need a new battery, but their replacement is a 900mAh and the regular battery is 630mAh, it's a real boost in play time.
So $90 for the repair, and an extra $30 for a better battery. It's worth it. It means that I've got an iPod that I can load specifically for events and not have to scroll through the huge music collection.