Yes, with software version .23 or higher this was added as a feature. The album cover needs to be in the same folder as the corresponding track and in the supported JPEG format.
Here is how the Olive ONE currently handles album artwork:
1) The ONE always looks first for embedded artwork in the metadata and this will take precedence over extra artwork that is included separately (i.e. if the metadata contains album artwork it will not be replaced by the extra artwork).
2) If no album artwork is embedded the ONE will look for album artwork files that are in the same folder as the track.
3) ONE will import the first .jpg/.jpeg file that it finds in the folder (sorted by name). It will be used as album artwork for all the tracks.
4) After the album artwork was imported into the ONE's library the location of this file cannot change and it should also not be deleted (as the ONE links to this directory).
The following album artwork resolutions are used on the ONE:
> The standard size is of the artwork in the play-screen is 120 x 120 pixels
> The size of the artwork in the zoom mode (i.e. when you tap onto the album artwork in the play-screen) is 300 x 300 pixels.
> Album artwork must be between 4K and 16MB.
We therefore recommend to save the artwork in a minimum size of 300 x 300 pixels or higher. If you use higher resolutions please make sure to keep the same ratio so the ONE can easily scale the artwork.
Note: If your album artwork does not show up we recommend to embed it into the metadata.To embed the album artwork with the metadata tag of the music file you can use a variety of free software. Some of our users have reported that mp3tag works very well (also for FLAC files and other formats). Here is a great tutorial on how to do this. Other great software packages for editing metadata are JRiver and MediaMonkey (free). For Apple Macs Doug's Apple Scripts for iTunes have been reported to work well.