I am experiencing the same issue, but am unable to remedy it. In my case, what I believe is going on with iTunes 9 is a change in folder structure that iTunes uses. In iTunes 9, they have changed how the program manages your media. They call it "iTunes Media Organization". Basically, it creates Movies, TV shows, album artwork, etc. in your "iTunes" folder alongside your "Music" folder, not within the "Music" folder. The only thing I can guess is that Apple did not update this change in the Screensaver preference pane to follow this new folder structure. I just don't know how, if it's even possible, to point the screen saver to a new album art location. If this truly is the problem, we might have to wait for an update of either iTunes or 10.6 itself.